Boardroom ‘pay revolt’ hits Drax

A potential pay revolt is overshadowing Drax Group’s move to renewables.

The Selby-based power generation company is facing major opposition to its proposed remuneration schemes, reports Sky News.

The company is due to convene on Thursday (13 April) for its annual meeting, where it is expected to face a revolt from Institutional Shareholder Services, a proxy voting adviser.

ISS has reportedly recommended that shareholders reject a pay package for the 2016 year which would see “excessive” shares handed out to chief financial officer Will Gardner, who joined the board in 2015. The shares are said to be worth around £1.4m according to The Times.

The revolt will put a spotlight on former Shell executive Tony Thorne, who is head of Drax’s remuneration committee.

A Drax spokesperson told TheBusinessDesk.com: “All payments and awards to directors were in line with the remuneration policy.”

The company recently acquired Louisiana Pellets for £28m as it looks to expand its biomass supply chain.