DFS Furniture PLC has released an update on its engagement with shareholders following the 2023 Annual General Meeting (AGM). The company reported that resolution 3, which approved the Directors' Remuneration Report, received support from a clear majority of shareholders, with 70.50% of votes cast in favor and 29.50% against. However, this fell short of the 80% support overall. Prior to the AGM, the Chair of the Remuneration Committee and other board members communicated with holders of 80% of the shares to offer them an opportunity to engage ahead of the meeting.
The company acknowledged that while the majority of shareholders supported the Directors' Remuneration Report, a small number were not in favor due to the increase in the CEO's base salary by an amount greater than the workforce average increase. The Committee stated that the adjustment was necessary to motivate and retain the CEO, who is critical to delivering DFS' transformational agenda. They also expressed gratitude to shareholders who engaged in the consultation and provided valuable feedback.
Following the AGM, the Committee has initiated a review of its remuneration strategy in preparation for presenting a Remuneration Policy to shareholders in November. The Committee Chair has written to all shareholders to seek feedback on the proposed approach to executive remuneration, indicating a commitment to ongoing dialogue with shareholders and proxy advisers on these matters.
DFS Furniture PLC is actively engaging with its shareholders and is taking steps to address concerns raised regarding executive remuneration, demonstrating a commitment to transparency and responsiveness to shareholder feedback.