Shareholders voted in favour of IAG’s proposed €2.75 billion ($3.25 billion) capital increase during the group’s AGM today, while also approving the directors’ remuneration package.
On the latter issue, however, some 21% of the votes were against the move, following reports that advisory agency Institutional Shareholder Services had recommended shareholders vote down the non-binding resolution.
Although the size of the revolt was notable – all other resolutions passed with at least 97% support – the approval means Willie Walsh steps down as IAG chief executive without an awkward AGM defeat against his name.
ISS’s concerns were said to be around the size of the bonus packages awarded to directors – including £883,000 ($1.09 million) in annual incentives to the departing Walsh, whose overall package for 2019 was valued at nearly £3.2 million.
The €2.75 billion capital increase was proposed at the end of July with the support of Qatar Airways – IAG’s largest shareholder with a 25% stake in the group.
IAG said that the increase would strengthen its balance sheet and liquidity, and reduce financial leverage, given that it does not expect global passenger demand to recover to pre-crisis levels until at least 2023.