Punch execs get easy ride at AGM

Punch Taverns executives got an easy ride from shareholders at its Annual General Meeting.

Shareholders had been expected to take Punch to task on the size of its debt, when a dividend would be paid and on speculation that it could ditch over 5,000 pubs by handing them back to bondholders.

Instead, one shareholder asked if new chief executive Ian Dyson would "bring in the M&S culture" of providing lunch for shareholders and asked for clarification over donations raised for charity.

The same shareholder did ask: "Do you have any strategy for reducing debt?"

But Punch chairman Peter Cawdron batted away the question: "Ian Dyson joined in September and is carrying out a thorough review which includes the debt structures and when we can start to pay a dividend again," he said.

"We are not in a position to discuss that at the moment but will be in the New Year."

Another shareholder, a member of CAMRA West London branch asked about the range of cask ales available and the use of restrictive covenants.

Tenanted managing director Roger Whiteside reiterated it no longer applied restrictive covenants to pubs it sold.

He said Punch was committed to increasing the range of beers available. "You will see more microbrewers taking on Punch pubs," he said.

All resolutions were carried, including the appointment of Ian Dyson as chief executive and his renumeration package, which includes a basic salary of £675,000 a maximum bonus opportunity of 150% of his salary and a long term incentive plan of 200% of basic salary.