U.K. bookmaker William Hill PLC (WMH.LN) Tuesday became the latest company to face the threat of a shareholder rebellion as investors voiced serious concerns over plans to award a GBP1.2 million "retention bonus" to its chief executive.

Just under 50% of shareholders opposed the resolution to award the bonus to Ralph Topping, but there was a sufficient number of votes to carry the proposal, which also sees Topping receive an 8.3% pay rise.

"Whilst we recognize that some shareholders are not supportive of this one-off agreement, we believe that there is widespread appreciation of the very significant contribution of Ralph Topping to the success of William Hill," said Chairman Gareth Davis.

The backlash adds to the gathering storm of shareholder discontent over the perception of excessive boardroom pay. Earlier Tuesday, Andrew Moss, chief executive of U.K. insurance group Aviva PLC (AV.LN), announced his resignation after shareholders rejected a proposed GBP2.69 million pay packet.

Last week, the chief executives of AstraZeneca PLC (AZN.LN) and Trinity Mirror (TNI.LN) also quit after investors challenged their pay.

Topping, who joined William Hill nearly 40 years ago and became chief executive in 2008, will now receive annual pay in excess of GBP1.7 million, while the retention fee means he will stay at the company until at least December 2013.

The bookmaker's shares have risen 32% since the start of the year as it has improved its online betting facilities, while net revenue increased 12% in the first quarter.

At 1218 GMT, William Hill shares were down 4.8 pence, or 1.8%, at 267.1 pence.

-By Peter Evans, Dow Jones Newswires; 44-20-7842-9308; peter.evans@dowjones.com

Reach (LSE:RCH)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Reach Charts.
Reach (LSE:RCH)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Reach Charts.