Shareholders are increasingly blocking excessive pay packages with the latest example being Royal Mail (RMG) where 70.2% voted against the directors’ remuneration package.

New chief executive Rico Back is being paid a £640,000 annual salary, which is 16.8% higher than his predecessor Moya Greene who stepped down as CEO on 1 June and leaves the company in September. Greene has also been awarded a £900,000 termination bonus.

Royal Mail non-executive director Orna Ni-Chionna says the firm does not feel it is appropriate to cut the salary for a ‘very demanding role,’ flagging Back’s pension entitlement is lower than Greene’s and that both individuals essentially have the same combined base salary, pension entitlements and benefits.

In May, 58.5% of shareholders voted against directors’ pay at British satellite telecoms firm Inmarsat (ISAT).

Other high-profile spats include 52% of shareholders at gold miner Centamin (CEY) voting against higher pay at its AGM in March.

Self-storage provider Safestore (SAFE) suffered a rebellion four months ago with nearly half of shareholders revolting against £14m in share awards for its chief executive and finance director. (LMJ)

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