Ninth Wage Protest Affects Shipping Intermediary Clarkson
Shipping Broker Clarkson Faces Ninth Year of Investor Backlash Over Executive Compensation
The waters aren't smooth for shipping broker Clarkson as they grapple with another significant shareholder uprising over executive pay. With an impressive 47% of investors opposing the pay scheme, they handed Andi Case a whopping £12.6 million.
Not only that, but 37% of votes were against the re-election of pay committee chairman Tim Miller. This marks the ninth consecutive year of discontent over boardroom pay at the company. The news came after Clarkson warned that profits wouldtake a hit due to the global trade war and its impact on shipping rates in dollar terms.
Choppy seas ahead? Indeed! The bad news sent Clarkson's shares diving to their lowest point in over a year.
Last year, Case, who has been at the helm since 2008, pocketed an £11.1 million bonus, following a 6% rise in profits to £115 million. The year before, he earned £11.6 million. Critics argue that the performance targets are too lenient for Case to reap such generous rewards.
This clash took place during Clarkson's online-only annual general meeting. Despite the votes, the company stated they took note of the votes on both the pay report and Miller's re-election.
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[1] Clarkson, Annual Profits, and Executive Compensation: A Long-Lasting Controversy, (The Daily Mail, 2022).
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- With Clarkson's shares diving to their lowest point in over a year due to the recent news about their pay practices and profits, it may be wise to look for more stable investments in the investing world.
- As the rebellion against Clarkson's executive compensation continues, it serves as a reminder to investors about the importance of evaluating a company's financial management before making investment decisions.
