Safestore is latest to ditch bonus deal

The revolt over high pay gathered pace today as another listed firm was forced into retreat over a pay deal which could have landed its chief executive more than £9 million in shares.

Self-storage firm Safestore is the latest to surrender on pay to quell shareholder anger over windfall deals, following similar recent moves from tobacco giant Imperial Brands and defence manufacturer Chemring.

Safestore’s Frederic Vecchioli would have been granted a maximum of 2.5 million shares after five years, worth £9.4 million at today’s share price.

Nearly 40 top bosses would also have shared in the new scheme. The board had already been forced to tighten performance conditions before abandoning the plans altogether.

After the proposal was withdrawn chairman Alan Lewis said: “While we have received considerable support from shareholders on the proposed structure it is clear that for others concerns remain.”

One source said the rejection was “disappointing” considering the trebling of Safestore’s value in the past three years.

“Attitudes in the past three or four weeks have just hardened so much,” he added.