Punch Taverns shareholders in AGM revolt

Punch Taverns shareholders signalled their displeasure with the company yesterday by voting against the company's remuneration report.

The shareholder revolt against proposed bonuses, pension hikes and 'golden goodbyes' to outgoing directors came on the day the pubco announced a continued decline in trading.

In what a spokesman for Punch admitted was "a shot across the bows" for the group, more than 55 per cent of shareholders voting at the company's AGM yesterday did so against a resolution to approve the report on director's remuneration.

Stressing the vote was an "advisory one", the spokesman said Punch's remuneration committee, which sets pay, pensions and bonus payments, would conduct a "full review" of its policy and "its future implementation".

The spokesman said the group took the views of its shareholders "incredibly seriously" and the review of the remuneration committee would investigate the views of investors.

The group would also consult with major shareholders as part of the review, he added.

The shareholder rebellion would make the company's directors "sit up and take notice", said one City observer.

"It is an advisory vote, but people don't take this sort of line unless they're unhappy with things".

Shareholder representatives have taken a dim view of the bonuses being paid to executives, increases in pensions and payments to departing executives, including a £652,000 payout to former commercial director Jonathan Paveley, who now chairs Admiral Taverns, £471,000 to Deborah Kemp, former head of the group's leased pub business and £284,000 to Andrew Knight, the former managing director of Spirit Group.

The spokesman denied any suggestion the vote was a criticism of senior management, although to many it could be seen as a signal that shareholders are running out of patience with the company.

The payments to outgoing directors were "contractual", he added.

Punch shares, which fell more than four per cent yesterday after what some in the City described as a "disappointing" trading update, were down more than two per cent today.