Public relations boss Lord Chadlington has suffered a major rebellion over pay and his re-election as chief executive of Huntsworth.
Almost 33% of investors voted against the company’s future remuneration policy and more than 23% rejected last year’s remuneration report.
Chadlington, a close friend of David Cameron, received another blow as almost one third of shareholders failed to back his re-election by abstaining.
Chief operating officer Sally Withey failed to win the support of 22% of shareholders. Leaving aside abstentions, Chadlington and Withey received 99% backing.
The revolt is significant by City standards and suggests that new chairman Lord Myners, the former City minister, has failed to mollify investors.
Chadlington’s pay is believed to be a source of tension as Huntsworth has struggled to increase revenues in recent years.
The Tory peer earned £1 million last year and his contract stipulates he is “entitled to a minimum annual increase in salary equal to any increase in the Retail Prices Index”. He could earn £2.2 million including bonus this year.
The PR group sold a 20% stake to China’s Blue Focus a year ago in a deal that eased its debt load.
Other investors include Aberforth with 12%, Fidelity on 10% and Wellcome Trust with 4%.
