Shareholders voice disapproval towards extravagant executive compensation at Plus500
Revamped Rant:
Plus500's shareholders have gone ballistic yet again, slamming the company's remuneration report at this year's annual general meeting (AGM). With a staggering 51% of votes cast against the report, it's clear as day that folks ain't happy.
Now, let's get down to brass tacks. This_wasn't_ the first time shareholders have thrown a tantrum. Last year, they voted down the remuneration report by 65.8%. And if that ain't enough, more than 22% of votes were also shooting down the re-election of Steve Baldwin as a non-executive director. Yikes!
But, here's the kicker, despite the votes against, the resolution was still approved. Talk about having the last laugh, eh?
The burning question is, what's causing all this fuss? Well, according to Plus 500's annual report, their top brass—David Zruia and Elad Even-Chen—collectively pocketed a whopping $9.7 million for the latest financial year. That's a hefty increase from $7.4 million the previous year.
In April, Plus500 surprised everyone by raising its outlook, despite a mixed start to the year. They reported a 13% increase in revenue month-on-month but a 5% drop year-on-year. Sounds contradictory, right? But, wait, there's more! Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 23% quarter-on-quarter but fell by 9% year-on-year.
They managed to onboard 26,897 new customers during the quarter, which sounds impressive, but it's actually a decrease from the last quarter of 2024. Furthermore, the number of active customers dropped by 4% quarter-on-quarter to 130,514. But, let's not forget the bright side: the average deposit per active customer skyrocketed by 106% during the quarter, reaching $12,450.
Now, let's hear what Plus500 had to say about it all. In a statement issued to the London Stock Exchange, they acknowledged that 20% or more of votes cast were against resolutions three and 11. They're taking it seriously, folks, and they'll continue to listen to shareholders and shareholder advisory bodies to ensure they're keeping their word on governance and remuneration.
Bottom line: Plus500's shareholders are fed up with the company's remuneration practices and governance. They think the bigwigs are raking in too much dough, and they want changes. Whether Plus500 will listen remains to be seen. Keep your eyes peeled for updates!
[Enrichment Insights: Shareholder revolts often arise due to concerns about excessive executive pay or perceived misalignment between executive compensation and company performance, as well as governance concerns regarding board oversight and accountability. Plus500, despite facing shareholder revolts, has emphasized its strategic progress, raised its guidance for 2025, and continues to focus on enhancing shareholder value through business expansions.]
- The 2024 AGM of Plus500 saw a significant negative vote against the remuneration report, indicating shareholders' frustration with executive earnings.
- Noted finance expert, Steve Baldwin, has faced criticism from shareholders, with more than 22% of votes against his re-election as a non-executive director.
- Despite the negative votes, Plus500's resolution regarding remuneration was still approved, a move that has been met with dissatisfaction among shareholders.
- In the ensuing year, shareholders are looking to technology-driven investing in Plus500, hoping for changes in the company's remuneration practices and improved governance to align executive earnings with business performance.
