First Leisure investors poised for revolt over Grade's pay
Thursday 26 February 1998
Institutional shareholders are also angry at the pounds 79,000 paid to Michael Payne, First Leisure's managing director, to extend his contract from one to three years, in direct conflict with corporate governance guidelines.
Institutions may seek to block the introduction of Mr Grade's new long term incentive plan. Several large shareholders are also threatening to vote against the re-election of three of the group's directors unless First Leisure comes up with satisfactory answers to their grievances. Joe Bollum, David Ducks and John Woolf, who all sit on the remuneration committee that agreed the payouts, could face opposition to their re-appointment at the group's AGM on March 17.
One fund manager said: "We are seeking clarification on the reason for these payments. This is far from over and the agm will be the focal point for concerns from shareholders."
Institutions have raised concerns over Lord Rayne and Robbie Rayne, the father and son team that sits on the remuneration committee. They are both directors and substantial shareholders of London Merchant Securities, the property group which was an original shareholder in First Leisure and which still has a major stake in the group. Another institutional shareholder said: "Their attitude to best corporate practice looks suspect."
Mr Grade's pay is pounds 510,000 a year, well in excess of the pounds 450,00 he earned as head of Channel 4. He is also entitled to a bonus for achieving a growth in the group's earnings per share and share price of just 2 per cent over and above the rate of inflation. The maximum payout under the scheme is pounds 625,000 a year if Mr Grade can achieve 6 per cent growth.
First Leisure tried to play down the extent of shareholders worries yesterday. Graham Coles, the group's finance director, said: "The institutions have not expressed any concerns to us. The performance criteria that Mr Grade has to meet are tougher than those of John Conlan [the group's former chief executive]."
First Leisure shares have underperformed the market by more than 30 per cent in the last 12 months.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...