Shareholders rebel at Kingfisher

The shareholders of DIY group Kingfisher (which includes such chains as B&Q and Brico Dépôt) are protesting the severance payment of departing CEO Véronique Laury, who would be receiving 552,000 pounds (610,000 euros).

 

Too generous?

24.19 % of the investors in construction market group Kingfisher have opposed the planned severance payment for CEO Laury, who will be replaced in September by former Carrefour China CEO Thierry Garnier. A number of other shareholders abstained from voting.

 

On top of her annual pay of 1.77 million pounds (1.9 million euros), which was already substantially higher than the 1.58 million pounds of a year earlier, the CEO would receive a bonus of 552,000 pounds. The investors argue that this bonus does not match the company's weak performance, which is why Laury was asked to leave after five years of leading the group.

 

New proposition

The remuneration committee is now reportedly in talks with the investors to figure out what the matter is and how they can solve the situation. According to the company, it understands that the concerns raised are mostly about estimations of the financial performances, and the consequences that has to have for the bonus.

 

Management continued with the statement that it will listen how it can reassess the results and and how they relate to the financial performances. Kingfisher wants to have a new proposition ready within six months.