Bodycote plc
AGM Voting Update
11 November 2020
At Bodycote plc’s Annual General Meeting held on 28 May 2020, resolution 11 (the approval of the
Annual Report on Remuneration) was supported by a majority of
shareholders but received less than 80% support. The key
concern from shareholders who opposed the resolution was in respect
of the CEO’s 2020 salary increase. In particular, determining
the CEO’s salary increase by reference to the average increase
awarded to the Czech Republic
workforce (where he lives and works) resulted in a larger increase
compared to the average Group employee salary increases observed
across the UK and Western Europe
more generally.
Following the AGM, the Committee wrote to Bodycote plc’s largest
shareholders and key proxy agencies outlining its proposed approach
and invited comments.
The Committee thanks shareholders who provided comments.
The Committee considers the principles of its approach to
reviewing Executive Director salaries to be robust. That is,
to consider Executive Director salary increases by reference to the
average increases awarded to the wider workforce in the country
where the Executive Director lives and works whilst ensuring that
any salary increase does not result in an excessive total
remuneration opportunity.
However, the Committee is also mindful of the views of
shareholders. Therefore, going forward, the Committee proposes to
review Executive Director salary increases by considering the
following reference points in the round:
- the average salary increases awarded to the wider workforce in
the country in which the Executive Director lives and works;
and
- the average salary increases awarded to Group employees across
Western Europe, including the
UK.
The Committee believes that this approach strikes an appropriate
balance between awarding Executive Directors with salary increases
which reflect pay practices and salary inflation in countries in
which they live and work, and having regard to salary increases
awarded to Group employees across Western
Europe.
U. Ball, Group Company Secretary, Bodycote plc
Tel: +44 (0)1625 505300