Darty 'error' on CEO pay angers investors

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SymbolPriceChange
KESAF2.000.00
TSRI3.19-0.13

Darty is facing a shareholder rebellion following the embarrassing admission of an 'error' in its disclosure of its chief executive's pay.

Darty has been forced into an embarrassing admission that stock options awarded to its chief executive when he joined the retailer three years ago were not subject to the performance targets it had orginally said were required for him to receive a payout.

In a statement to the stock market on Friday, the former owner of Comet said an options award worth at least €775,000 (£614,000) when it was granted to Thierry Falque-Pierrotin in 2009 was not dependent on any performance hurdles being met.

The company admitted it had made an “error” in its 2009 annual report and that the share award was linked to options he gave up when he joined Darty, then known as Kesa Electricals (Other OTC: KESAF.PK - news) , from French retailer PPR (TLO: PPR.TI - news) .

“The 2009 Annual Report and Accounts erroneously stated that a TSR (NasdaqCM: TSRI - news) [total shareholder return] performance condition also applied; this was not the case,” said Darty in a statement to the market.

Darty’s admission comes as the retailer faces up to a potential shareholder revolt over its executive pay report that could be one of the biggest seen this year.

According to City sources cited by Sky News, more than 50pc of Darty’s shareholders are expected to vote against its remuneration report this month.

Shareholders are said to be angered at the way Darty failed to notice for so long the error in its disclosures over its chief’s pay. The Association of British Insurers is expected to issue a 'red-top’ notice over the issue.