Amigo shareholders rebel over chief’s £600k paypacket
Beleaguered lender Amigo Loans faced a rebellion from shareholders today as nearly half of its investors voted against a proposed £600,000 pay packet for its chief executive.
Some 45 per cent of shareholders voted against plans to approve the compensation policy at Amigo’s annual general meeting this morning, which outlined plans to pay the CEO a £600,000 base salary and the chief financial officer £355,000 per year.
While the policy has passed, the scale of the pushback signals the discontent of investors as it prepares to resume lending next year under new chief Danny Malone.
Amigo is still awaiting approval from the City regulator to restart operations following a loan mis-selling scandal in which it was found to have not properly carried out affordability checks on customers.
The firm is looking to shake off its past and resume lending with a “mid-cost” credit product under a new ‘RewardRate’ brand.
Bosses said it had also undergone cultural reset and now had the “right values and operational processes in place”
“We are confident the mistakes of the past will not be repeated,” the firm said in a statement today.
Amigo also revealed a fresh capital raise of £40m this morning via a share issue, as it looks to boost its coffers before it resumes lending.