On the Beach has suffered a shareholder revolt over pay to directors.
Results from the OTA’s annual meeting revealed that 20% of shareholders voted against approving its directors renumeration policy.
The board of the company said it understood the opposition related to the introduction of a 2023 long term incentive plan (LTIP).
In a statement issued alongside the AGM voting results, On the Beach said that its remuneration committee “believes that the 2023 LTIP will enable the company to retain key talent by providing management with greater visibility over long-term remuneration outcomes in a very challenging market, while addressing the difficulties faced in setting long term performance targets in the context of the volatile UK travel sector”.
The company added: “Nonetheless, the board notes the concerns raised by some shareholders and will reflect on feedback received, whilst maintaining focus on alignment with the best interests of shareholders and also with the company’s growth ambitions and strategy to capture market share over the long term.”
On the Beach pointed out that the committee carried out “an extensive engagement process” on changes to the remuneration structure ahead of the publication of its annual report, including direct consultation with over 65% of the shareholder base and major UK proxy advisors.
“Their feedback and guidance was taken on board in shaping the policy and the 2023 LTIP, in particular by simplifying the initial proposal to focus solely on time-based awards with a 50% reduction in quantum.
“This is in line with major UK proxy adviser guidelines and also in line with the transition that many other companies in the sector have previously undertaken.
“Following the publication of the annual report, the board communicated with 80% of the shareholder base to offer an opportunity to engage ahead of AGM.”
On the Beach said in a trading update on Friday that bookings since Christmas have “materially increased” with total transaction value up 68%.