Shareholders Stage Significant Rebellion Against High Executive Compensation Packs at Plus500
Fresh Rewrite:
Looks like Plus500's annual general meeting (AGM) saw a massive backlash against their remuneration report. More than half of the votes cast were a big "no" to this year's report, which was part of their recent annual report.
Incredibly, over 22% of votes were also against the re-election of Steve Baldwin as a non-executive director. Still, despite the negative votes, the resolutions were still passed.
This isn't the first time Plus500 faced such resistance. Last year, an astonishing 65.8% of votes were cast against the same report at the AGM.
According to Plus 500's annual report, their chief executive, David Zruia, took home a massive paycheck of almost $5m for the latest financial year, an increase from $3.7m. The group chief financial officer, Elad Even-Chen, also earned the same hefty salary and enjoyed the same pay boost.
In April, Plus500 raised its outlook despite a mixed start to the year. The company reported a 13% increase in revenue month-on-month but a 5% decrease year-on-year. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 23% quarter-on-quarter but fell by 9% year-on-year.
They managed to onboard 26,897 new customers during the quarter, significantly fewer than the 36,329 in the last quarter of 2024. The number of active customers dropped 4% quarter-on-quarter to 130,514. However, the average deposit per active customer increased by a whopping 106% during the quarter, to $12,450.
A statement issued to the London Stock Exchange said, "The board of Plus500 notes that 20% or more of votes cast were cast against the board's recommendation for resolutions three and 11, the latter of which is an advisory vote. The board has noted the outcome of these votes, and it takes such matters seriously. The board will continue to engage with shareholders and shareholder advisory bodies to ensure their feedback continues to inform the company's approach to governance and remuneration while taking into account the specific needs and profile of the company."
Though the search results don't specifically mention the current controversy surrounding Plus500's remuneration and governance, they do indicate that the company has faced significant controversies, including platform failures, financial discrepancies, and legal issues such as class-action lawsuits alleging misleading practices[2]. Regarding remuneration controversies, the search results mention a "huge shareholder revolt against top pay packets" without providing further details on the specific matters of remuneration reports or board elections[3]. To find more precise information about the current remuneration and governance controversies at Plus500, including shareholder votes, you would need to look for more specific news articles or official company statements.
- Despite the recent backlash from shareholders during the AGM regarding Plus500's remuneration report and the re-election of Steve Baldwin, the resolutions were still passed.
- investors expressing dissatisfaction over Plus500's remuneration policies and executive compensation could potentially impact technology investing in the finance sector.
- In light of the controversy over earnings and remuneration at Plus500's AGM, some investors might reconsider their investing strategies in the business.
- Given the continuous concerns about Plus500's governance and remuneration, shareholders might choose to focus on other technology-driven companies for their business endeavors in 2024.
- As Plus500 navigates ongoing controversies surrounding its AGM, the company should consider addressing shareholder concerns by implementing new policies on remuneration and promoting transparency to maintain investor confidence.
