FirstGroup investors rebel against chief's pay package

16th Jul 2014 14:49

Investors at bus and train operator FirstGroup have rebelled against the award of an 86% pay rise to Chief Executive Tim O'Toole last year.Holders of almost a quarter of First's shares cast their votes against the company's remuneration report at its annual meeting.Investors cast 74.46% of votes in favour of the report while 25.54% were against. O'Toole's total package rose to just under £2m in 2013/14 from just over £1m in 2012/13 as a result of the vesting of a "retention award" of £324,000 granted in 2011 and a bonus of about £600,000, plus other items.He has faced pressure since First did a £615m rights issue in May last year and the company has lost one of its UK rail franchises and failed in bids for a further two.Rebel investor Sandell Asset Management, which owns about 3.1% of First,last month pledged to oppose O'Toole's award and said it would encourage other shareholders to do the same.Sandell has previously demanded the sale of First's US Greyhound coach operation and the spin-off of the rest of its US business.First said O'Toole's pay has been frozen at £846,000 a year for three years and he declined a bonus in 2011/12 and 2012/13.FirstGroup shares rose 4.6p or 3.6% to 132.8p by 15:01 in London.PW