Glanbia shares fall as investors revolt over managing director pay hike
Shares in Irish dairy giant Glanbia tumbled over 6% yesterday, after more than a fifth of the group's shareholders revolted against plans to hike managing director Siobhan Talbot's multi-million euro pay package by a further 22%.
Last year less than 1% of shareholders voted against the remuneration committee's recommendation.
Glanbia operates a mozzarella cheese factory in Moira, Co Down.
Ahead of yesterday's AGM, two prominent investor advisor groups had recommended rejection of the proposed salary increase.
However, the increase was voted through by 79.4% of shareholders.
Glass Lewis and ISS had recommended that shareholders vote against the proposal, which sees Ms Talbot receive a pay rise of 22% and finance director Mark Garvey a 14.9% increase.
Meanwhile, in a trading update the group's Global Performance Nutrition (GPN) arm reported its first quarterly fall in two years.
The GPN division - which includes the recently acquired SlimFast brand - saw its volume decline by 16.5%, while its price declined 3.4% in the three months to March 31.
Investors had expected the volume 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.
Ms Talbot said the group's strategy "remains on track" as it reported an 8.4% increase in revenue overall in the three-month period.
"Our strategy remains on track and we reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, in 2019, with growth to be delivered in the second half of the year," she said.
Glanbia reiterated its full-year guidance of 5% to 8% growth in adjusted earnings per share, with growth to be delivered in the second half of the year.
Analysts at Davy Stockbrokers said they envisaged "no material changes" to Glanbia's financial year 2019 earnings forecast.
The Kilkenny-headquartered company said it is looking at growing online sales of its nutritional products.
Ms Talbot told shareholders that health and wellness is one of the biggest global trends among consumers and governments.