A resolution to hike Liontrust chief executive Jon Ions’ salary to £550k has passed, despite significant shareholder pushback.
Around 46% of shareholders voted against changes to the remuneration policy, which would see the CEO’s (pictured) base salary increase by 58%, at the fund group’s general meeting (GM) on Wednesday morning.
A second resolution to lift the awards for executive directors under Liontrust’s Long-Term Incentive Plan was shot down by 44% of shareholders.
Liontrust has previously faced the wrath of shareholders over proposals to shake up its remuneration policy but Wednesday’s vote was its narrowest escape yet.
Influential advisory groups Glass Lewis and ISS had urged shareholders to vote against the proposals.
Liontrust CEO took home £6.6m last year
On top of his salary increase, Ions can also be awarded up to 450% of his annual salary as a bonus.
Ahead of the GM, Liontrust had argued the proposals would bring Ions’ pay in line with “market norms”. Since the last policy was approved in 2018, Liontrust’s market cap has ballooned from £325m to £1.3bn at the end of December 2021 thanks to a combination of organic growth and acquisitions.
Ions’ current salary of £348k is 63% of the median pay of other FTSE 250 financial services bosses, the board noted, and since 2015 he has only seen one 5% increase to his salary level, even though the broader workforce has typically received this level of increase on an annual basis “for strong performers”.
Despite this, Ions took home a total pay package worth £6.6m last year.
His new salary will apply from 1 April 2022, at which point joint CFO and COO Vinay Abrol will also see his salary boosted by 28% to £420k.
See also: Liontrust rakes in £830m ahead of Majedie acquisition
Narrow escape for Liontrust
Responding to the nail-biting result, the board said it was “disappointed” by the voting outcome, after undertaking “extensive and positive engagement” with Liontrust’s top 20 shareholders on the pay proposals ahead of the GM.
“The board of Liontrust strongly believes that retaining and appropriately incentivising an exceptional management team, albeit on a highly competitive basis, is in the best interests of all our stakeholders.
“While the two resolutions were passed, the remuneration committee is acutely conscious of the votes against and will reflect on feedback from those shareholders,” it added.
