Will Thomas Cook revolt spark a new 'shareholder spring'?

Thomas Cook has been forced to make changes to a controversial long-term bonus scheme after a large-scale revolt by some of its biggest investors.

The opposition has sparked speculation that corporate Britain could be facing another "shareholder spring", which refers to the widespread investor rebellions that took place in 2012 and were replicated on a smaller scale last year.

Shareholders accounting for a third of voting shares officially opposed a "strategic share incentive plan" that would have paid chief executive Peter Fankhauser and chief financial officer Michael Healy up to 225 per cent of their salaries, says The Times.

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"There was also a vote of more than 20 per cent against two resolutions approving the remuneration report and remuneration policy."

The Financial Times adds: "Fankhauser made £703,800 in base salary last year… but has just presided over operating losses of £49m and warned on the outlook for the rest of the year."

Standard Life Investments – Thomas Cook's second biggest shareholder with a 13 per cent stake – confirmed it voted against several resolutions, including the re-election of remuneration committee members.

A spokesperson said it did so because the scheme for the two executives would have entitled them to payouts that are "above the remuneration policy’s normal upper limit".

In response, Thomas Cook said it would limit payouts to a maximum of 200 per cent of base salary – and to delay the scheme until after the end of the current financial year.

Given ongoing anger about unfairness in big business, prompting promises of a clampdown from Prime Minister Theresa May, this could be the first of many shareholder revolts in the coming season of annual meetings.

Last year oil giant BP, miner Anglo American, energy firm Centrica and financial behemoth Citigroup, among others, all faced off against shareholders over executive pay, says City AM.

Just last month Imperial Brands caved in to shareholders ahead of its annual meeting and withdrew a resolution seeking approval for big pay rises for its executives, claiming its pay had not kept pace with its rivals.