TRG faces investor backlash over CEO bonus
Hornby was paid £1.2m, up £518,000 year-on-year, marking the first time since 2017 that the group paid out any annual bonus to a chief executive
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The Restaurant Group (TRG) is facing a potential backlash from the Institutional Voting Information Service (IVIS) as the company’s chief executive, Andy Hornby, has received the highest pay since 2017, while benefiting from government support.
According to the Guardian, the Institutional Voting Information Service (IVIS), which is part of the Investment Association and advises investors on corporate governance, has marked TRG’s annual remuneration report with a ‘red top’ warning.
The association suggested that shareholders vote against pay rise for the executive, and it has raised concerns about the bonuses at a time when the company benefited from government support, including furlough pay for workers and business rates relief.
Hornby was paid £1.2m, up £518,000 year-on-year, as he collected his first annual bonus after more than two years in charge.
This marks the first time since 2017 that the group, which also owns the Frankie and Benny’s and Chiquito chains, paid out any annual bonus to a chief executive.
According to the Guardian, the IVIS said to back TRG’s remuneration report, shareholders would have to be satisfied that the bonus payouts for 2021 are commensurate with the experience of employees and other stakeholders, given the company’s use of furlough and business rates support and the suspension of dividends.
Meanwhile, TRG’s remuneration committee said it had reduced the executive bonus payouts to 60% of their total.
TRG told Catering Today: “The board is mindful of a range of external and internal factors when considering its approach to remuneration and regularly consults its shareholders on these matters.
“The business delivered a strong trading performance in 2021, following the reopening of its sites, however, in light of the Covid-19 pandemic and the receipt of significant government support, the Remuneration Committee felt it appropriate to reduce executive directors’ bonuses by 40%.”
It added: “During the pandemic, 2019 bonuses were voluntarily waived by directors and no bonuses at all were awarded in 2020. In addition, directors waived between 20%-40% of their salaries through the pandemic for 12 months from March 2020.”
TRH is set to hold its annual meeting on 24 May.
