(Alliance News) - Micro Focus International PLC is to make changes to its remuneration policy following discussions with shareholders, it said on Thursday.
In March, some 50% of shareholders voted against the firm's remuneration report. At the time, the enterprise software firm said it was "disappointed" with the outcome and would be talking with shareholders.
Since then, a number of concerns have been raised, including the overall structure of the company's incentive arrangements, including the combination of a long-term incentive plan and an additional share grant.
Further, shareholders expressed concerns regarding an additional LTIP award which was made to Chief Financial Officer Brian McArthur-Muscroft when he joined in February.
"Since the annual general meeting in March, the board has undertaken a detailed review of all of the feedback received from our shareholders and proxy agencies on the 2018 remuneration report," said Micro Focus.
It continued: "As a result, we have concluded we will need to propose a number of changes in our new remuneration policy which will be put to shareholders at the 2020 annual general meeting. The proposed new remuneration policy will also be developed alongside the strategic review, which the company announced on August 29 to ensure it supports the company's strategy."
"We will be consulting widely with our shareholders over the coming months to further understand their views to ensure that these, together with the latest corporate governance requirements, are reflected in the new remuneration policy," Micro Focus added.
Shares were 1.0% higher on Thursday afternoon in London at a price of 1,117.40 pence each.
By George Collard; georgecollard@alliancenews.com
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