However, the policy survived what was billed as a binding vote, with 67.4 per cent of votes cast in favour.
The policy covers the next three years and will see Chadlington earn a minimum of £721,000 this year, which could treble if he earns the maximum £835,000 annual bonus and maximum £668,000 share-based longer-term performance target.
A mid-point performance would net him £1.76m, which is 70 per cent more than he was paid in 2013 when he received a £332,000 annual bonus but did not receive any compensation under longer-term performance targets.
According to a source close to the company, it may consider rebalancing the policy more towards longer-term performance targets in the wake of the vote.
Yesterday’s meeting saw all resolutions passed but three sizeable protest gestures:
- 23.4 per cent of votes cast were against last year’s remuneration report
- more than a quarter of shareholders withheld their vote on reappointing Lord Chadlington as a director
- nearly a fifth of shareholders withheld their vote on reappointing chief operating officer Sally Withey as a director
Withey, as the other executive director covered by the new pay policy, could earn a maximum £1.53m this year.