Glanbia shares fall as investors revolt over Talbot pay hike
Drop triggered by disappointment at results for company's Global Performance Nutrition division
Shares in Glanbia tumbled over 6pc yesterday amid disappointment at a trading update and as more than a fifth of shareholders voted to oppose a 22pc hike for managing director Siobhan Talbot under a new three-year multimillion-euro pay package.
The shareholder revolt at yesterday's annual general meeting (AGM) in relation to pay marked a dramatic swing from last year, when fewer than 1pc of shareholders voted against the executive pay deal recommended by the board's Remuneration Committee.
Ahead of the AGM, two prominent investor advisor groups - Glass Lewis and ISS - had recommended that shareholders vote against the proposal, which sees Ms Talbot receive a pay rise of 22pc and finance director Mark Garvey's pay increase 14.9pc.
Yesterday's sharp share price drop came ahead of the vote, triggered by disappointment at results for Glanbia's Global Performance Nutrition (GPN)
The GPN division reported its first quarterly fall in two years, when the impact of buying SlimFast was excluded.
The GPN division grew by 4.9pc overall, but declined 16.5pc when SlimFast is stripped out.
Investors had expected the decline to be in the low double digits.
The SlimFast acquisition performed strongly, with especially strong consumer demand for recent innovations in the UK and United States, according to the global nutrition group.