Shareholders Rebel Against High Executive Compensation Packets at Plus500
Freshly Spun Article:
It looks like Plus500 has been caught in a whirlwind of investor backlash yet again, this time targeting their remuneration report at the annual general meeting (AGM).
Nearly 51% of votes were cast against the report, which was nestled within the recent annual affairs publication. Additionally, over 22% of votes were cast against the re-election of Steve Baldwin as a non-executive director.
Despite the substantial opposition, the proposals managed to wiggle their way through. This response follows a vote of 65.8% against the same report at last year's AGM.
As per Plus 500's annual report, CEO David Zruia pocketed a whopping $4.97 million for the latest financial year, a jump from $3.7 million. The group CFO, Elad Even-Chen, matched his counterpart's paycheck and experienced a comparable swell.
In a measly April move, Plus500 decided to lift its forecast, despite reporting a rather uneven start to the year. The company shared that its revenue during the first quarter increased by 13% monthly but dropped by 5% yearly. Earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 23% quarterly but dipped by 9% yearly.
New clients joined the platform at a rate of just 26,897 during the quarter, compared to 36,329 in the final quarter of 2025. The number of active customers took a 4% tumble quarterly to reach 130,514. However, the average deposit per active customer skyrocketed by 106% during the quarter, reaching $12,450.
A declaration issued to the London Stock Exchange read, "The Plus500 board acknowledges that 20% or more of votes cast were cast against the board's recommendations for resolutions three and 11, with resolution 11 being an advisory vote."
"The board recognizes the outcome of these votes and holds them in high regard. The board will carry on engaging with shareholders and shareholder advisory bodies to ensure that their feedback continues to shape the company's governance and remuneration policies, while taking into account the specific requirements and character of the company."
Insight: The extended search results don't uncover evidence pinpointing the exact cause of Plus500's repeated shareholder pushback specifically towards its remuneration report and board recommendations. However, the dire fact that Plus500 execs divvied up a $10 million paycheck raises suspicions that investor disaffection may be fueled by escalating executive compensation, as observed in similar cases like the London Stock Exchange Group's CEO pay package controversy[2][3]. Generally, shareholder revolts often boil down to executive pay, management concerns, or performances that fail to meet shareholder expectations. To offer a more accurate answer, specific details about Plus500's remuneration strategies or questionable board decisions would be required. It's crucial to consider factors such as excessive executive pay, alleged mismanagement, or poor alignment between company performance and shareholder returns among the possible triggers for these shareholder uprisings.
- The repeated investor backlash towards Plus500's remuneration report might be due to concern over excessive executive compensation, as observed in similar cases like the London Stock Exchange Group's CEO pay package controversy.
- In the realm of business and finance, technology plays a crucial role in deciphering investment trends, but it appears Plus500's investors are more interested in scrutinizing aspects like executive pay and governance, as evident from the annual general meetings votes.
