Hollick holds on to £250,000 bonus despite shareholder revolt

by Sam Matthews, Brand Republic 13-May-05, 11:00

LONDON - Outgoing United Business Media chief executive Lord Hollick was dealt a humiliating blow yesterday after 76% of the company's shareholders voted to block his £250,000 bonus, but the Labour peer still walked away with the payment.

The money was opposed by more than three quarters of UBM shareholders, with just 13% voting to back the remuneration report and 11% abstaining.

Lord Hollick will still get to keep quarter-of-a-million bonus because the company is "contractually and legally" obliged to make the payment and because yesterday's resolution was only advisory.

Lord Hollick justified taking the bonus on leaving UBM's annual meeting yesterday.

"You can rest assured that if I had not felt I had earned it I would not have taken it," he said.

The money was promised to the Labour peer for a successful handover of his role to new chief executive David Levin.

As well as 76% of shareholders, organisations including the Association of British Insurers and the National Association of Pension Funds denounced the payment.

Lord Hollick, who was held leadership positions in UBM predecessor companies for 31 years, stepped down from the UBM board yesterday.

He is due to move straight into his next job as London head of the US private equity group KKR.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.