ITV investors revolt over Adam Crozier's £8m pay bonanza

Chairman Archie Norman declares rewards had 'stringent requirements'

More than a quarter of ITV investors failed to back the chief executive Adam Crozier's £8.4m pay and bonus package yesterday.

At the broadcaster's annual meeting, 22.5 per cent opposed the remuneration report. Once abstentions were included, 25.7 per cent failed to back the report in a surprisingly large rebellion at the Mr Selfridge broadcaster, which has enjoyed a renaissance in recent years as profits soared and the dividend was reinstated.

John Farmer, a small shareholder in many FTSE 100 companies, told the annual meeting: "I simply do not believe £8.4m is necessary."

Another small shareholder said Mr Crozier's pay was "too much" and "not right".

The ITV boss earned a base salary of £841,000, but his total remuneration was 10 times higher thanks to a short-term bonus of £1.4m, a long-term bonus of £2m, and a one-off share award worth £4m.

He was handed that last award when he arrived in 2010 but it only vested last year, by when it had soared in value as ITV's shares have nearly quadrupled on his watch.

Mr Farmer criticised the award as a "golden hello" and claimed that some of the performance criteria were "extremely vague".

A vote on the future remuneration policy also suffered a protest vote. While 96 per cent were in favour, there was a large number of abstentions, as 16.8 per cent failed to back the report. The City shareholder watchdog Pirc had called the bonuses "excessive" ahead of the meeting.

The rebellion at ITV follows larger protests at other FTSE 100 companies including Barclays, Standard Chartered and the Financial Times' owner Pearson in recent weeks, although not on the scale of the 2012 "shareholder spring".

ITV's chairman Archie Norman insisted Mr Crozier deserved his high pay while admitting: "You may think all his Christmases have come at once." But Mr Norman said "it is right" that the chief executive is "properly incentivised" as shareholders had prospered. "It is a function of the coming together of a number of schemes, including the share award on his arrival to set him up when he arrived from Royal Mail," said Mr Norman, dismissing suggestions of a "golden hello" as all awards were subject to "stringent requirements".

The mood at the annual meeting in Westminster was amicable and Mr Crozier also received applause. One shareholder congratulated him and said it was a "no-brainer" to pay him well when the share price had soared from a low of 18p in 2009 to nearly £2.

A third vote on a new long-term bonus scheme passed easily, with 95 per cent in favour, despite Mr Crozier's maximum bonus opportunity rising from 225 per cent to 350 per cent of salary.

Investors remain concerned about ITV's future prospects after its strong recovery and the shares slumped more than 6 per cent yesterday on a lacklustre trading update.

First-quarter revenues rose only 2 per cent to £585m as its programme-making arm ITV Studios saw a slowdown because of seasonal "phasing" of work and its share of viewing fell 8 per cent. But ITV was upbeat about a World Cup advertising boost and international growth, especially in America. The shares fell 11.9p to 179.1p.

Life and Style
food + drink
Arts and Entertainment
musicBand's first new record for 20 years has some tough acts to follow
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Quantitative Risk Manager

Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments