TRG comes under renewed pressure from activist investor

The Restaurant Group (TRG), owner of Wagamama, has reportedly come under renewed pressure from activist investors, according to reports from The Times.

Oasis Management Company, the hedge fund leading the rebellion, has accused TRG of excluding “certain” shareholders from key information ahead of the company’s AGM.

Oasis has used its 12.3% shareholding to take issue with TRG’s pay packages, financial performance and other concerns.

The company has written to Ken Hanna – TRG’s chairman – expressing its “deep concern regarding the equal treatment of shareholders”.

The letter from Oasis claims that ISS, the proxy shareholder advisory group, was made aware of a commitment by TRG to review the remuneration policy.

However, it states that this had “not been (nor has it subsequently been) made public by the company”.

Investors will be asked to vote on pay packages next week and Oasis and several others plan to vote against the pay package for CEO Andy Hornby, who received £792,000 last year.

Oasis has called Hornby’s pay “disproportionate” considering that TRG’s share price has fallen by around 70% since he took over in 2019.

Despite this, TRG has won the support of another of its largest investors ahead of its annual meeting, according to Sky News.

It is believed that Royal London Asset Management, which owns just under 5% of TRG, will vote in favour of the board and pay policy on Tuesday.

This comes after TRG’s largest shareholder Columbia Threadneedle Investments, which holds a 19% stake, said earlier this month it would back Hornby and Hanna.

TRG owns more than 400 UK restaurants including brands such as; Frankie and Benny’s, Coast to Coast, Chiquito and pub group Brunning and Price.