Aggreko PLC Directors' Rem Policy & Restricted Share Plan (5697D)
April 27 2017 - 7:39AM
UK Regulatory
TIDMAGK
RNS Number : 5697D
Aggreko PLC
27 April 2017
Aggreko plc Directors' Remuneration Policy and Restricted Share
Plan
The notice of Annual General Meeting of Aggreko plc held today
included, as Resolution 3, a proposal to approve a new Directors'
Remuneration Policy and as Resolution 18, a proposal to approve a
new Restricted Share Plan ("RSP").
Whilst a substantial majority of Shareholders (through proxies
and corporate representatives) were in favour of the Directors'
Remuneration Policy, the majority in favour of the RSP was much
lower. The RSP is an integral part of the Policy with proposed
awards under this plan reflecting a reduction in the amount of
annual bonus and awards under the Long Term Incentive Plan and an
increase in personal shareholding requirement.
In view of the level of support for the new Restricted Share
Plan, the Board of Aggreko decided to withdraw both Resolutions.
The existing Remuneration Policy, which was approved by
shareholders in 2015 will therefore remain in place.
During 2016, Aggreko's Remuneration Committee undertook a
comprehensive review of the Group's Remuneration Policy. Given the
significant changes within the Business, the wider environment in
which it operates and the ongoing transformation programme, the
Committee was keen to ensure that Aggreko's Remuneration Policy
more fairly aligns shareholder, company and management
interests.
In formulating the proposed new policy, the Committee noted the
outcome of the recent Investment Association Remuneration Working
Group and subsequent changes to the Investment Association
guidelines - in particular the call for flexibility in determining
a policy tailored to individual company circumstances and the
potential for using restricted share awards. The Committee
consulted with the majority of its largest shareholders,
representing over 50% of issued share capital. The new Remuneration
Policy, including the RSP, took into account the feedback from
these consultations.
The results of the voting at the Annual General Meeting will be
announced later today.
Chairman, Ken Hanna said: "Whilst both resolutions would have
gained majority support, the level received for the RSP element is
not one that we are comfortable proceeding with. This is
disappointing as we believe our proposal aligned shareholder,
company and management interests.
We will now reengage with shareholders with the intention of
introducing a revised policy for approval at our AGM in 2018."
Enquiries
Media
John Sunnucks / Liz Morley, +44 20 3772
Bell Pottinger 2500
This information is provided by RNS
The company news service from the London Stock Exchange
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