Trinity Mirror chief executive Sly Bailey is to see her bonus slashed following unrest among shareholders.
According to the company’s annual report Bailey’s pay and pensions package came to £1.3m last year, but a report in today’s Evening Standard today said Trinity would be ‘dramatically changing her controversial pay deal in future’and had ‘bowed to shareholder pressure”.
Last month it was reported that Bailey was facing a shareholder rebellion over her ‘excessive’pay package.
Four of the company’s biggest shareholders – Schroders, Aviva Investors, Standard Life and Legal & General – were said to have called on chairman-elect David Grigson to cut her £1.7m pay packet.
Today Trinity said that Bailey’s potential cash bonuses will be cut from 110 per cent of base salary to 55 per cent, although her potential long-term share awards will soar from 80 per cent of salary to 144 per cent.
It also said that her ‘maximum annual bonus opportunity, which means cash plus deferred shares, will fall from 176 per cent to 110 per cent of salary”.
Today’s report showed Bailey earned a base salary of £750,000 and a short-term cash bonus worth a further 30% of salary, with her pension contributions totalling another £248,000.
She also received 503,000 shares worth an extra £396,000 which vest in 2014, according to the Standard, and could earn a further 762,000 shares by 2014.
The remuneration report said it was ‘satisfied that this level of bonus payment is justified by the company’s performance relative to both budget and market expectations”.
Bailey will continue to earn £750,000 this year but Trinity shareholders will have to approve the changes at the annual general meeting on 10 May.