(Alliance News) - Dixons Carphone PLC on Thursday said shareholders raised concerns regarding its level of bonus payments and the number of shares in the 2019 long-term incentive plan award.
Back at its September annual general meeting, the electronics and mobile telephone retailer saw a large minority - about 24% - of its shareholders vote against its remuneration report. Meanwhile, the remuneration policy had just 89% in favour.
Upon completion of the AGM, Dixons Carphone said it sought to understand and address shareholder concerns. As part of this effort, the company either met with, or written to, shareholders representing over 70% of its share capital and invited them to attend meetings, it said.
Dixons Carphone said shareholders were concerned about the level of bonus payments, given the assessment of business performance. At the time, the firm reported a 10% drop in UK & Ireland mobile like-for-like revenue, and a 12% reported revenue drop, for the 13 weeks ended July 27. Group revenue growth for the period was zero for both reported and like-for-like.
Dixons Carphone shareholders were worried as well about the number of shares in the 2019 long-term incentive plan award, given a lower share price.
The stock was trading 0.3% higher in London on Thursday morning at 136.75 pence a share. Dixons shares were trading as low as 115.50p at the time of annual general meeting last year. They have dropped in value by more than two thirds in the past year.
As a result, Dixons Carphone said it had reduced the allocation of long-term incentive plan award shares from 275% to 250% of salary, one year ahead of the implementation of the new remuneration policy.
"The company's remuneration committee and the board have welcomed the opportunity to have constructive discussions on remuneration with our shareholders," the company said in its statement Thursday.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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