Investors fail to block Greencore bonuses amid anger over UK Covid support
Investors in Greencore, the sandwich-maker that supplies UK retailers including M&S, narrowly failed on Thursday to block plans to pay out hundreds of thousands of pounds in executive bonuses, following outrage at the company’s failure to refund any of the near-£30m it received in government Covid support during the pandemic.
At the firm’s annual general meeting, 46% of investors joined a rebellion against the Dublin-based company’s scheme to reward directors with bonus shares.
The firm, which also counts Sainsbury’s and the Co-op among its major UK clients, said that despite only securing 54% of the vote, it would press ahead with the scheme.
Most companies that took government furlough funds and remained profitable have repaid the Treasury before offering staff and director’s bonuses.
However, Greencore has joined a list of firms, including WH Smith, JD Sports and Homebase, that have hung on to money from one or more of the government pandemic rescue schemes.
The shareholder adviser firms Glass Lewis and ISS said investors should consider rejecting Greencore’s remuneration report. Both advisers have raised concerns over the “appropriateness” of the FTSE 250 firm’s bonus payments, given its reliance on cash from the government furlough scheme, which subsidised staff salaries with state funds during the Covid outbreak.
The company has defended its use of government funding, noting the severe drop in profits it suffered at the height of the pandemic, when lockdown orders hit sales of breakfast and lunchtime meals at most supermarkets.
In a statement it said: “The board engaged extensively with shareholders to discuss the approach to remuneration. The board will continue to engage with shareholders on remuneration and other
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