W H Smith delays Cowling pay rise after shareholders object

W H Smith has delayed a £25,000 pay increase for c.e.o. Carl Cowling after 33% of voting shareholders opposed the company's remuneration plans at this week's annual general meeting.

When Cowling joined the retailer in November 2019, his salary was set at a lower level to his predecessor with the company agreeing to increase it by £25,000 annually for three years, subject to performance.

Cowling was awarded the first increase, which brought his salary to £550,000, from 1st July 2020, despite recording a headline loss of £69m in the year to end August 2020 and announcing cost-cutting measures.

The company committee agreed he had “performed well against his personal objectives” and boosted his salary from 1st July 2020. He donated the monthly amount of that increase to charity until October.

However, at an a.g.m. on 20th January, 33% of shareholders who voted came out against the company's remuneration plans. W H Smith acknowledged this was a “significant minority” and their primary concern was Cowling's pay increase. As a result, the firm will postpone this April's planned £25,000 rise until a more “appropriate” time.

In a statement, the company said: “Prior to today's a.g.m., we engaged with a number of shareholders on our executive remuneration arrangements and, as a result, we confirm that the previously announced increase in Carl Cowling's salary in April 2021 will be postponed until such time as the remuneration committee believes that it would be appropriate to implement it, but it is unlikely to do so in the financial year ending 31st August 2021. We confirm that we will continue to actively engage with shareholders on executive remuneration to ensure their views are fully understood during 2021.”

The development comes after the retailer issued a trading update showing group revenue for the 20 weeks to 16th January 2021 fell to 59% of 2019 levels, although the High Street benefited from strong sales, particularly in December.