Ann Crotty
3 minute read
27 Oct 2020
8:47 am

Distell’s new remuneration policy gets the nod

Ann Crotty

But a critic says there is a lack of alignment between the interests of executives and those of shareholders.

An outspoken shareholder activist is concerned that Distell CEO Richard Rushton's (pictured) incentives aren't aligned to shareholder value. Image: Moneyweb

Distell’s charm offensive seems to have worked again this year.  At its AGM last week, a remarkable 99% of shareholders voted in favour of the non-binding resolutions on executive remuneration – despite the group’s rather grim seven-year profit record and the steady erosion of its market cap over the same period.  No doubt the promise of significant changes to the policy helped to keep supporters on side.  Before last week’s AGM, the board released a trading update and a reminder of proposed changes to its remuneration policy aimed at “aligning performance with shareholders’ interests”.  So, shareholders were voting in support...