Cox punters urged to revolt

SHAREHOLDERS are being urged to revolt and vote down a new pay package for directors at today's annual meeting of Cox Insurance. Corporate governance group Institutional Shareholder Services is concerned that the cost of the compensation package is more than two and a half times larger than normal for a company of its size.

ISS, which advises big City funds on a variety of boardroom issues, is recommending rejection of two resolutions to approve the pay policy and a new long-term incentive plan.

ISS has other misgivings about Cox. It claims only two of its non-executives can be considered independent. It is also unhappy that chief executive Michael Dawson has a two-year service contract, twice as long as laid down in corporate governance guidelines.

Cox was forced to raise £73m from investors after suffering heavy losses from the World Trade Centre attacks. Peter Wood, the founder of Direct Line, recently bought a 1.3% stake in the company.