Update on Annual General Meeting 2020 vote

RNS Number : 8344V

Paragon Banking Group PLC

12 August 2020

 

Paragon Banking Group PLC ("Paragon" or the "Company/Group")

Update on Annual General Meeting 2020 vote

At Paragon's annual general meeting ("AGM") on 13 February 2020, resolutions two and three on the directors' remuneration policy and report received the support of 71.02% and 74.33% of shareholders respectively.  The policy and report are set out on pages 93 to 124 of Paragon's 2019 Annual Report - https://www.paragonbankinggroup.co.uk/investor/reports-results-presentations

The UK Corporate Governance Code requires that companies provide an update within six months of an AGM where more than 20% of shareholders have voted against a resolution.  This statement provides an update on the key actions that have been taken by the Remuneration Committee.  These actions reflect the feedback from shareholders in respect to the resolutions put to the AGM.

	Action
1	Changes to the Executive Directors' salaries and pensions together with the introduction of role-based allowances were originally scheduled to take effect from 1 October 2019 operating for the Group's full financial year.  Following shareholder engagement, these changes were instead introduced on the day after their approval by shareholders at the AGM
2	The Committee has committed to disclosing the following customer metrics, which were used in the Paragon Performance Share Plan grant made in July 2020.  This metric applies to 12.5% of the overall award:
a)	Customer insight feedback on key product lines
b)	Customer complaints relative to risk appetite levels
c)	Average overturn rate for customer complaints relative to the Financial Ombudsman Service's reported rates.

The Remuneration Committee will engage further with Paragon's major shareholders on the remuneration policy and its implementation over the next few months but it believes that these changes address the concerns of a number of Paragon's shareholders, whilst ensuring that the Executive Directors' remuneration arrangements continue to serve the best interests of the Company and all its stakeholders.   We will provide a further update on our shareholder engagement in the directors' remuneration report within our 2020 annual report and accounts. 

Enquiries:

Marius van Niekerk, Company Secretary

0121 712 2075

12 August 2020

 

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