By AGENCIESIN YET another show of investor discontent over lofty remuneration, SABMiller suffered a backlash yesterday when 23% of shareholders voted against the company’s pay policies at its annual general meeting.
High executive pay in the UK has come under the spotlight in the midst of recession fears. However, an SABMiller spokesman in London said: "A resounding majority of shareholders voted in favour of all of the resolutions."
According to a report by proxy voting agency Manifest and remuneration consultancy MM&K, released in June, the UK’s top bosses enjoyed average annual pay rises of 12% last year, despite the FTSE 100 losing 6%.
According to its annual report, SABMiller CEO Graham Mackay earned £5,9m last year, up from £5,6m in 2010.
Also at its annual shareholders meeting, chairman Meyer Kahn stepped down after 46 years with the company and was succeeded by Mr Mackay. SABMiller Europe MD Alan Clark became chief operating officer yesterday and will succeed Mr Mackay as CEO at next year’s annual meeting.
Until then, Mr Mackay, who has been CEO since 1999, will hold dual roles of chairman and CEO, despite UK corporate governance code practices which recommend a CEO should not become chairman or hold the combined role.
The world’s second-largest brewer by volume also said in a statement released yesterday that revenue grew 8% in the three months to June 30 on a constant currency basis, beating market expectations of 6%.
Beer volumes, excluding the effect of acquisitions and disposals, increased 5%, while soft drinks volumes gained 6%.
"SABMiller’s first-quarter interim management statement confirms a strong start to the year. A number of key volume numbers were notably positive and consistent with our expectations of 16% full-year revenue growth, of which 10% is expected to be organic," Chris Wickham, an analyst at Oriel Securities in London, said.
Like other brewers, the company is prospering from emerging markets but demand is sluggish in Europe.
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