Shareholders at DSG International voted in favour of a controversial salary sacrifice arrangement which will allow its chief executive sacrifice 25% of his salary in return for share options.
The electrical goods retailer won the backing of shareholders despite the fact that The Association of British (ABI) Insurers has issued an ‘amber top’ report to highlight that the proposal was unusual and in breach of its guidelines on corporate governance.
At the firm’s annual shareholder meeting held yesterday 87.21% of votes were cast in favour of the scheme and 12.79% were against. DSG said it was pleased with the outcome of the proposal, which needed the approval of 50% of shareholders in order to be passed.
A statement from the firm read: “In the light of our five year Renewal & Transformation plan DSGi’s remuneration committee reviewed arrangements for 2009/10 so that they appropriately incentivise management to deliver the plan and improve returns for shareholders.
“We consulted with our shareholders on these proposals and they are fully supportive, primarily because these arrangements more closely align the remuneration of the executives with the interests of shareholders.”
DSG International owns stores such as Currys, Dixons Travel and PC World.
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