Foxtons, Paddy Power Betfair investors back executives pay

Shareholders of Paddy Power Betfair approved Wednesday their directors' pay, rejecting the recommendations of influential advisors in a sign that dissatisfaction over high salaries has yet to result in widespread change.

2016-05-19

United Kingdom

Reading time 1:36 min

Shareholders of Paddy Power Betfair approved Wednesday their directors' pay, rejecting the recommendations of influential advisors in a sign that dissatisfaction over high salaries has yet to result in widespread change.

A majority of shareholders in British estate agent Foxtons Group Plc and Paddy Power Betfair backed their 2015 director pay reports, voting results showed.

Investors in the UK and the United States are increasingly expressing anger over the rapid growth in executive salaries, especially when a company's performance fails to meet expectations.

This year, oil major BP Plc, medical equipment firm Smith & Nephew and oil equipment maker Weir Group were among the companies whose shareholders rejected their 2015 payouts in non-binding votes.

At Foxtons' annual general meeting, 79.30 percent of the votes cast were in favour of its director pay. Paddy Power Betfair - formed when Paddy Power combined with rival Betfair- received 68.22 percent of votes backing the remuneration in its first meeting as a merged entity.

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A Reuters analysis of executive pay at Britain's top companies showed that the average pay of CEOs fell in 2015, but a deeper slide in corporate profits meant their cut of the spoils continued a decade-long rising trend

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Institutional Shareholder Services and Glass Lewis had recommended Foxtons shareholders vote against its director pay, while Pensions and Investment Research Consultants had opposed Paddy Power Betfair's remuneration.

Circassia Pharmaceuticals Plc's, gambling software provider Playtech and Jupiter Fund Management Plc were among the other London-listed companies whose director pay reports were approved by shareholders on Wednesday.

A Reuters analysis of executive pay at Britain's top companies showed that the average pay of CEOs fell in 2015, but a deeper slide in corporate profits meant their cut of the spoils continued a decade-long rising trend.

Foxtons Chief Executive Nic Budden's pay was raised even though the company's 2015 profit fell and it forecast fewer home sales for the second quarter.

Paddy Power Betfair's shares had closed lower on March 8 after the company's results even though it reported a rise in revenue and profit for both firms separately. Investec analyst Alistair Ross wrote in a note then that Betfair's core earnings were below his estimates.

Foxtons shares closed unchanged at 157.25 pence, while Paddy Power Betfair shares ended 0.9 percent higher at 8,899 pence.