Nearly a third of Balfour Beatty’s shareholders rebelled against a pay package increase for chief finance officer Philip Harrison at the company’s annual meeting this morning (8 May).
The UK’s biggest contractor saw 70.25 per cent of its shareholders vote in favour of the 2024 remuneration report in the firm’s annual accounts, with 29.5 per cent voting against.
In a statement, Balfour Beatty said: “The board notes the level of support for the [directors’ remuneration report] was lower than in prior years due solely to the 2025 pay review for the group’s chief financial officer (CFO), Philip Harrison.
“The pay review was in full compliance with the company’s remuneration policy, previously approved by shareholders,” it added.
“In approving the 2025 CFO pay review, and in light of his key role in supporting the transition to a new group chief executive and increased responsibilities taken on during the year, the remuneration committee reviewed his salary and overall remuneration package.”
The 2024 annual report increased Harrison’s salary from £509,000 to £598,000 from 1 February 2025.
It said: “The remuneration committee were […] mindful that his current package is positioned below sector peers of a similar size and complexity, and whilst the committee does not set its remuneration policy to directly align to these benchmarks, it is appropriate to factor this into the review.”
In addition, Harrison was awarded a performance share plan award of shares worth 200 per cent of base salary, based on future performance.
Earlier this year, Balfour Beatty chief executive Leo Quinn announced he will leave the company this year after 10 years in charge.
He will be succeeded by AtkinsRéalis chief operating officer Philip Hoare in September, but will remain at the contractor in an advisory capacity for several months during a transition period.
Earlier this morning, Balfour Beatty said in a trading update that average net cash in 2025 is expected to reach between £900m and £1bn, following a “strong” performance in the year to date.
While the revolt suggests discomfort with Harrison’s pay review, the vote is advisory in nature, so will not force the contractor to change course.
Construction News approached Balfour Beatty for further comment.