GBG shareholders reject board’s remuneration resolution

Shareholders in Chester ID verification group, GB, have rejected board proposals for management remuneration levels.

The international provider of anti-fraud technology held its annual general meeting at its Chester HQ this morning.

Eleven of the 12 resolutions were passed, apart from resolution six, to “receive and approve the report on directors’ remuneration” which was opposed by 57.46% of all the votes cast.

In a statement to the stock exchange, GB Group said: “The board notes that the advisory vote on the directors’ remuneration report did not receive the required majority number of votes to pass.

“Prior to the AGM the remuneration committee conducted an extensive consultation with the company’s largest shareholders regarding the directors’ remuneration report.

“The remuneration committee values the feedback they have received on the company’s remuneration arrangements and will continue to engage constructively with shareholders.”

The vote comes against the backdrop of a huge loss posted by the group for the year to March 31, 2023.

Turnover jumped to £278.8m from £242.5m the previous year. But the group posted a £118.8m pre-tax loss, which compared with a pre-tax profit of £21.7m in 2022.

The group said this was due to a non-cash exceptional goodwill impairment charge of £122.2m against its Identity business in America, and reflected the macro challenges in the past year.

The group revealed that its executive directors and board opted not to take a salary increase for the 2023 financial year due to the financial performance of the business.

Chief executive Chris Clark’s salary was £637,000, compared with £1.3m in 2022.

GB’s share price fell more than four per cent on news of the AGM vote, to 250p per share, compared with an opening price this morning of 260p.