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Highlights
Serco Group released an update on consultation following its annual meeting
Shareholder approval of the Directors’ Remuneration Report fell below the UK Corporate Governance Code threshold
Company reaffirmed continued dialogue with shareholders on remuneration policies
Serco Group plc (LON:SRP), a constituent of the ftse350, operates as a major provider of public services with global reach. Its operations span defence, healthcare, transport, justice, migration, and customer service contracts. With more than fifty thousand employees, the group delivers services for government organisations, using technology and partnerships to manage complex programmes and infrastructure.
Outcome of Annual General Meeting
At the company’s annual general meeting held in April, all resolutions were passed. However, the resolution concerning the Directors’ Remuneration Report gained approval below the threshold outlined in the UK Corporate Governance Code. The company therefore initiated a consultation process to engage with shareholders and explain its approach to executive pay.
Details of Remuneration Report
The Directors’ Remuneration Report covered the appointment of Anthony Kirby, who took over as Group Chief Executive in March, following the retirement of Mark Irwin. According to the report, Kirby’s salary was positioned slightly above the level previously held by Irwin, reflecting scheduled adjustments that would have applied had Irwin remained in post. The remuneration committee cited external benchmarks, scope of responsibilities, and Kirby’s expertise as factors in determining the package. The terms of Irwin’s retirement were also consistent with the policies already communicated in prior company statements.
Consultation with Shareholders
Ahead of the annual meeting, the chair of the remuneration committee contacted leading shareholders and proxy advisory firms to set out the rationale behind the decisions. No material feedback was received before the meeting. Following the vote outcome, which showed a minority against the remuneration report, the company again reached out to its largest shareholders to understand the concerns. Feedback from this second engagement process also did not highlight significant issues, according to the update.
Commitment to Ongoing Dialogue
Serco noted in its statement that it will continue to engage with shareholders and governance bodies when determining executive remuneration. The group emphasised that it aims to maintain transparency, ensuring its remuneration decisions are explained clearly in subsequent reports. The company intends to reflect any insights from shareholder engagement in future disclosures.
About the Group
Serco positions itself as a partner to governments across multiple regions, offering advisory, systems integration, programme management, and facilities services. Its activities are supported by a distinctive operating model designed to integrate service design with delivery. Core strengths include managing large-scale and sensitive operations, from justice and migration services to defence and healthcare.
