Shareholder spring slays Pendragon

Inspired by the courageous revolutions in North Africa and the Middle East, British investors have been casting off the shackles of domination and casting votes against excessive executive pay awardsWell, that's the idea anyway, although it is worth noting that votes on remuneration reports are only advisory and can be - and back in the bad old days usually were - ignored by the board. The so-called "shareholders' Spring" may have changed all that, and has caused yet more panic in a British board room this week after 67% of investors in car dealer Pendragon voted against the company's remuneration report.Pendragon had wanted to increase the bonus element of directors' pay from 100% to 150% of base salary - that did not go down well with shareholders who have seen the value of their holdings decline 35% in the last 12 months.The company now says it will think again. It will need to because it wasn't only the pay awards that received opprobrium.At the annual general meeting yesterday 26% of shareholders also voted against the reappointment of Chairman Mike Davies, while 14% came out against the Chief Executive Trevor Finn.This follows recent rebellions over pay at insurance firm Aviva and newspaper publisher Trinity Mirror - both of whose Chief Executives decided to leave. Shareholders also cut up rough over pay awards at advertising conglomerate WPP and bookie William Hill, recently, while going further back the head honchos at the banks have had a few uncomfortable moments which prompted some of them to waive bonus payments to which they were legally entitled.How much energy the shareholder spring has left is a moot point but although the comparison is weak, the Arab Spring has taught us one thing: when a mass movement begins, it is very hard indeed to stop.BS Aviva WPP