W H Smith shareholders approve Cowling's £550k bonus

W H Smith shareholders have approved plans to pay chief executive Carl Cowling a £550,000 bonus, despite threats of a revolt earlier this week.

At its annual general meeting on 19th January, all 18 resolutions were approved, including the controversial remuneration report. 

Sky News reported last week that three of the main proxy advisers, which issue guidance to City shareholders ahead of annual meetings, signalled their opposition to the bonus and said a "substantial proportion" of investors were expected to vote against both the company’s remuneration report and pay policy.

While the vote on the remuneration report was close, it passed with 54.4% of votes in favour, and 45.6% of votes against.

An advisory note on the report said: "The remuneration committee has already conducted an extensive consultation with the company’s largest shareholders regarding the remuneration report and the company’s new remuneration policy. The new chair of the remuneration committee, Marion Sears, looks forward to continuing the company’s constructive discussions with shareholders, following her appointment, over the coming months.

"The board will report on any actions resulting from those discussions in due course."

In a trading update this week, the retailer reported a "good performance" for the 20-week period to 15th January 2022, with total group revenue at 85% of 2019 levels. 

Cowling said he was "pleased" with the progress made in the period, while the High Street business performed well and "in line with expectations". He said the retailer was seeing "a small impact from the Omicron variant" but anticipated a resumption in the recovery of its travel markets in the coming months.