Major shareholder revolt over top bosses’ pay at Games Workshop
Nottingham-based fantasy games manufacturer and retailer Games Workshop has suffered a major shareholder revolt over directors’ pay.
The company saw almost 21% of its shareholders vote against its remuneration report and nearly 27% vote against its rumeneration policy at is AM, held on Wednesday (September 18).
The firm increased sales in the last year by 12% to £526m with pre-tax profits growing 19% to £203m.
On the back of that, CEO Kevin Rountree was handed a bonus worth 150% of his basic salary, while Liz Harrison, who has replaced Rachel Tongue as CFO benefiting from the same percentage boost to her pay packet.
Rountree earns £1.87m a year – made up of a basic salary and target-linked bonuses. Both he and Tongue received a basic salary increase of 7.4% from January 1.
Games Workshop has a strict policy by which each executive director must spend 67% of the 150% bonus to buy shares in the company and keep hold of them for at least three years.
A statement from the firm said: “The board notes that more than 20% of the votes cast on resolutions 10 and 11 (the former of which is an advisory vote) were against those resolutions.
“It takes the outcome of shareholder votes very seriously and will engage with shareholders to understand their views.
“In accordance with the UK Corporate Governance Code, the company will publish the outcome of this engagement in the next six months.”
Shares in Games Workshop closed at £104.50 on Wednesday down 50p on the day.
Earlier on Wednesday, the company said its latest quarterly results were in line with forecasts in a 23-word statement to the London Stock Exchange.
