Yellow Cake amends long-term incentive plan after shareholder feedback
By Josh White
Date: Friday 28 Feb 2025
(Sharecast News) - Yellow Cake announced on Friday that it has amended its long-term incentive plan (LTIP) following shareholder feedback after its 2024 annual general meeting, where concerns were raised about director remuneration.
The AIM-traded firm said that while all resolutions at the AGM were passed, the reappointment of non-executive director Sofia Bianchi and the advisory vote on the directors' remuneration report both received less than 80% approval.
Investor Shareholder Services (ISS), a proxy advisory firm, initially recommended voting against Bianchi's reappointment due to her multiple board positions, but later revised its stance after clarifications.
However, the update came just before the proxy voting deadline, which Yellow Cake said could have limited shareholders' ability to adjust their votes.
ISS also advised voting against the remuneration report, arguing that LTIP awards were not linked to performance conditions.
Yellow Cake disputed that analysis, but undertook a shareholder consultation to address investor concerns.
In response, the company's remuneration committee redesigned the LTIP, replacing market-value options with performance shares, a structure it described as simpler and better aligned with shareholder expectations.
The revised plan incorporated performance conditions designed to reflect the company's exposure to uranium price movements.
Following discussions with major investors, Yellow Cake said it was confident that the changes would ensure management incentives were aligned with shareholder interests and prevent rewards for underperformance.
The issue of LTIP awards for the financial year ending 31 March had been deferred to allow for shareholder consultation, and was granted on 27 February under the new terms
Yellow Cake said it would continue engaging with shareholders on remuneration matters.
At 1149 GMT, shares in Yellow Cake were down 3.19% at 448.8p.
Reporting by Josh White for Sharecast.com.
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