GLENCORE said it would consult with shareholders after about a quarter of votes were cast against its proposed remuneration policy at the group’s annual general meeting today.
“The company liaised extensively with its largest shareholders in developing the remuneration package and is grateful for their support,” it said in an announcement. “We will continue to consult with shareholders regarding their concerns.”
Some 25.79% of 229 million votes cast were in opposition to the policy which chairman, Tony Hayward, said last week he was optimistic would be supported.
Proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) had earlier in April recommended the rejection of the proposal in terms of which incoming CEO, Gary Nagel – who takes over from Ivan Glasenberg in July – would receive a maximum total compensation of $10.4m.
Nagle’s remuneration includes short-term incentives and the introduction of a restricted share plan (RSP), a form of long-term pay whereby shares are held by the employer for a certain period. Share rewards would account for 60% of the total.
“We have spent an enormous amount of time over the last six months or so engaging with shareholders and we feel we came up with an overall package that was fair, balanced, and equitable with respect to our new CEO and shareholders,” said Hayward on April 22.
Shareholders were more supportive of Glencore’s proposed Climate Action Transition Plan in which it committed to cutting total emissions 40% across Scope 1,2 and 3 by 2035. At this level of emissions, the company would be aligned with the Paris Agreement.
“The board also notes and appreciates the strong shareholder support … which follows the strategic commitments set out in December 2020,” it said.