Wagamama owner narrowly beats AGM investor revolt
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
Wagamama owner The Restaurant Group (TRG) has narrowly beaten a revolt from rebel investors over the pay of CEO Andy Hornby and the direction of the company at its most recent AGM.
Over 45% of shareholders voted against the company’s directors remuneration report for 2022 which revealed that Hornby was paid £792,000 last year.
Alongside this nearly 16% of the shareholders voted against Hornby’s reelection as a director.
Further to this, 23% of the shareholders voted against the reelection of chairman Ken Hanna and 24% voted against the reelection of Zoe Morgan as non-executive director.
The rebellion has been led by hedge fund Oasis Management Company which holds a 12.3% shareholding.
TRG is facing mounting pressure from investors as the financial performance of the company has faltered in recent years.
It posted an £86.8m loss last year, its fourth full year loss in a row, and its share price has fallen 80% since it bought Wagamama in 2018.
TRG stated: “As set out in the Directors’ Remuneration Report, the Remuneration Committee intends to keep the Remuneration Policy under active review to ensure it remains appropriate to the group’s evolution and aligned to stakeholder interests and will provide an update on that review within the statutory six-month timescale.
“In particular, it will re-engage with our largest shareholders over the coming months as to whether the Restricted Share Plan should be replaced by some other form of long-term incentive plan in line with the preferences of some shareholders.”
It added: “Whilst Resolutions 6 and 10 [reelection of Hanna and Morgan] were passed with a clear majority, the board recognises that there was also a significant vote against these resolutions, with Resolution 6 passing by 76.94% and Resolution 10 by 75.68%.
“The board believes that a clear majority of shareholders support the current board and management team as they focus on delivering for the group, but it will continue to engage and consult with shareholders, including those who voted against these resolutions.”
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.
