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The board of finance specialists Paragon Banking Group came under fire at its AGM on 1 March 2023 when the company’s remuneration report was challenged by 30.81% of its investors voting . 

Approval of the directors’ remuneration report at Paragon’s AGM on 3 March 2022 passed with 97.48%. The 2023 results may have come as a surprise to the Solihull-based FTSE 250 stalwart, considering that its remuneration committee had sought guidance from the company’s investor base on remuneration prior to the AGM and the remuneration report had also received the nod from proxy advisors Glass Lewis in the run up to the AGM.  Paragon acknowledged the shareholder dissent in its , stating that:

‘The Remuneration Committee consulted broadly with the majority of the Company’s top shareholders and will reflect carefully on the points raised by those shareholders who were not supportive of Resolution 2 and seek additional input where necessary. In accordance with the UK Corporate Governance Code, the Company will publish an update within the next six months of this AGM.’

In contrast, the separate resolution for approval of the directors’ remuneration policy was passed with 96.99% of votes in favour. CEO Nigel Terrington’s total remuneration for the year ended 30 September 2022 was £3.45m, including a bonus of £905,000. The new remuneration policy will provide top executives 20% of shares over five years. In addition, the maximum bonus available has been reduced from 150% of the base salary to 98%.