Liontrust Asset Management (LIO) eked through a plush pay policy for its senior executives at a general meeting on Wednesday, with only 54 per cent of shareholders voting in support of the director’s remuneration proposal and 56 per cent in favour of its long-term incentive plan, amid objections from proxy advisers.
The new policy lifts chief executive John Ions’ base salary by 58 per cent to £550,000 and chief financial officer Vinay Abrol’s salary to £420,000, a 28 per cent increase. However, a bonus cap has been introduced following objections to Ions’ £6.2m take home pay last year. Mr Ions will now have a potential 450 per cent of his base salary paid as an annual bonus and a potential 459,390 shares (based on the current level of issued share capital) over a five-year period under a long-term incentive plan.
While the resolutions were passed, Liontrust’s remuneration committee said in a stock market filing that it is “acutely conscious of the votes against and will reflect on feedback from those shareholders”.
A spokesperson for the company added: "The board of Liontrust strongly believes that retaining and appropriately incentivising an exceptional management team albeit on a highly competitive basis is in the best interests of all our stakeholders". The board was also "disappointed" with the result of shareholder vote, the spokesperson added.
Liontrust’s assets under management and advice reached £37.2bn at the end of 2021, up from £29.4bn a year ago as its sustainable investing approach has made its funds a favourite among private investors.
Glass Lewis, a proxy adviser which encouraged shareholders to vote against the policy, said “executives appear to be eligible for remuneration that significantly outpaces their peers.” Institutional Shareholder Services, another proxy adviser, said the pay policies had “not been accompanied by sufficiently compelling rationale”.
George Yeandle, chair of Liontrust’s remuneration committee, had told shareholders that the new remuneration policy aimed “to incentivise the executive team to continue to execute its proven strategy and drive growth both organically and through acquisitions”.
The company’s share price is up 17 per cent over 12 months to 16 February, although it has tumbled 27 per cent since the start of 2022.
