SIG shareholders revolt against pay increases

13th May 2010 17:10

SIG shareholders have voted against pay rises for its directors, with the majority of the vote against the salary increase of chief executive Chris Davies.The building products firm said it noted "with disappointment" that 66.7% of the shareholders voted against the approval of the Remuneration Report. "I believe the majority of the negative vote relates to the increase in our Chief Executive Chris Davies's salary following a very difficult year for SIG when profits reduced and when we raised capital via an equity issue," said SIG Chairman Les Tench in a statement.Tench said the Remuneration Committee was unanimous that the increase, which was deferred at Davies's own request from the prior year, was "fully justified, adding that his performance had been "instrumental in SIG's improving outlook"."I and the Remuneration Committee strongly believe that the new salary is not excessive. However, I recognise the strength of Shareholder opinion on this issue and intend to consult further with our Shareholders to understand their concerns fully," added Tench.Earlier in the day, the group said the recent trading trends continue to point to a levelling out in monthly sales sometime in late summer 2010. "As previously anticipated, it now appears by year end that some of the sales lost in Q1 due to the extreme weather will be recovered, though not all, particularly in Europe where the duration of the disruption was longer than in the UK and Ireland," it said.