Liontrust reflects on shareholder revolt over pay

CEO John Ions set to enjoy 20% hike in variable remuneration

Liontrust AUM grows 61% in a year

Liontrust has said it is reflecting on the large number of shareholders who voted against plans to shake up its remuneration policy and hike variable pay for chief executive John Ions (pictured).

A resolution to make a number of changes to the remuneration policy was rejected by 39.3% of proxy voters at a general meeting on Tuesday. A second resolution to increase the level of awards under the Long-Term Incentive Plan (LTIP) by a fifth was rejected by 38.8% of shareholders. Details of the proposed changes were first put to shareholders in August.

There was also unanimous show of hands at the meeting, which coincided with the annual general meeting (AGM).

Ions was paid £2.2m in the year ended 31 March 2018, up from £1.7m the previous year. His fixed pay was £387,000.

Balancing variable and fixed pay

The boutique fund house issued a regulatory filing following the meeting, stating that the remuneration committee noted the votes against and would reflect on feedback from those shareholders.

The policy aimed to keep the balance of reward “significantly” tilted towards variable pay for performance rather than fixed, the board said. The policy also sought to defer a greater proportion of remuneration.

The committee said it would continue to engage with shareholders on the issue of remuneration.

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