1:45 pm, May 21, 2020
Investors have rebelled over Pendragon’s executive pay plans at the company’s AGM.
Some 41 per cent of votes cast went against the changes which could allow chief executive Bill Berman to earn up to £2.2m a year.
The new scheme – which combines a fixed salary, annual bonus, and long term incentive plan – will top up Berman’s pay by 250 per cent of salary if targets are hit.
Martin Casha, the group’s chief operating officer, is in line for a £1.5m pay packet while Mark Willis, the chief financial officer, could earn £1.2m.
The board has given up its 2019 annual bonus – which was worth 100 per cent of salaries – as a result oft he overall performance of the group and the challenges faced across the business.
In the directors remuneration report, chair of the remuneration committee Mike Wright, wrote: ‘Unquestionably, 2019 has been a challenging year for the business, both in terms of company performance and challenges caused by changes to, and the refreshing of, our board of directors.
‘Set alongside these challenges, the Remuneration Committee has continued to closely follow the ongoing debate on executive remuneration, fairness and corporate culture.’
The report explains that when Berman and Willis joined Pendragon there was no long term incentive plan in place, so it suggested enhancing this year’s plan to reflect that.
The report added: ‘The committee would like to ensure that the CEO is appropriately incentivised at this crucial time for the company.
‘The proposed award levels are therefore 250 per cent of salary for the CEO and for the CFO. The proposed opportunity for the COO is 150 per cent of salary.’
This morning, Pendragon said it made a loss of £2.3m in the first quarter of this year.
In a Stock Market trading update the group said that profit before tax was impacted by £10m by the crisis in the quarter.
The overall loss of £2.3m is still an improvement on the same quarter last year, though, when Pendragon recorded a £2.8m loss.
Pendragon CEO Berman will be joining Car Dealer Live tomorrow at midday. Visit our website tomorrow to watch the interview live.
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