REG-AGM Statement <Origin Href="QuoteRef">WEIR.L</Origin>

WeirAnnouncement

28/04/2016 16:40

Statement following 2016 Annual General Meeting 
 
   
 
 Following the Annual General Meeting of The Weir Group PLC, Chairman, Charles
Berry, issued the following statement: 
 
   
 
 "The Board are pleased that shareholders have endorsed the vast majority of
resolutions at today's Annual General Meeting.  The Group's resolution on the
Directors' Remuneration Policy did not gain sufficient support and will not
now proceed.  During an extensive consultation period, the Board had tried to
forge a consensus between different shareholder views. 
 
   
 
 The Group's proposed policy would have offered senior management greater
stability through the introduction of restricted stock awards in return for a
substantial reduction in the maximum award available to the most senior
Executive Director from 250% of salary to 165%.  Restricted stock awards do
not come with direct performance criteria but closely align senior management
incentives with shareholder interests, as their value is dependent on share
price performance, with the award taking five years to fully vest.  In
addition, the Remuneration Committee would have had the power to claw back
restricted awards if necessary.  
 
   
 
 The policy was designed to ensure fairness and consistency across senior
management levels and followed extensive consultation with shareholders, who
held a wide range of views.  During those discussions there was broad
acknowledgement of the issue facing many companies, including Weir, of how to
effectively recruit, retain and incentivise senior management, across multiple
territories, when market conditions beyond their control remain challenging
for a sustained period.  
 
   
 
 In Weir's case, these market conditions have recently included a significant
fall in commodity prices as a result of oversupply in mining and oil markets
and a slowdown in global economic growth.  Given the volatility in end
markets, the Group's Remuneration Committee has highlighted the difficulty in
setting meaningful financial performance targets over the three-year period
required by the current Long Term Incentive Plan.     
 
   
 
 While acknowledging the issue faced by the Group, a majority of shareholders
were clearly uncomfortable with a new approach which did not follow standard
UK practice.  However, as the Interim Report by the Investment Association's
Executive Remuneration Working Group recently suggested, standard practice in
the UK may not be sufficiently flexible and companies should be allowed 'to
propose the remuneration structure that is in their judgement most
appropriate' 1 including consideration of the introduction of restricted
stock. 
 
   
 
 The Board looks forward to further engagement with shareholders regarding
remuneration, as we jointly develop a revised policy for consideration in the
future.  We encourage all shareholders to actively participate in this
process, as without this engagement their views can't be reflected in
developing proposals which are relevant for the Group.  In the meantime, Weir
will continue to operate under the remuneration policy which was approved by
shareholders in 2014 and which runs until 2017, with awards made tomorrow
under these rules."     
 
   
 
 - Ends - 
 
   
 
 Notes: 
 
 1 Investment Association Executive Remuneration Working Group Interim Report,
published April 2016 
 
   
 
 About The Weir Group PLC 
 
   
 
 Founded in 1871, The Weir Group PLC is based in Glasgow, Scotland and is one
of the world's leading engineering businesses. Weir designs, manufactures and
services innovative solutions which make our minerals, oil and gas and power
customers more efficient. This is recognised in the global leadership
positions we have developed in our core markets. 
 
   
 
 The Group aims to be a partner of choice to our customers with a worldwide
network of around 200 manufacturing facilities and service centres. The
business has a presence in more than 70 countries, with 14,000 people around
the world working in three divisions: Minerals; Oil & Gas; and Flow Control. 
 
   
 
   
 
  Enquiries:                                                                    
  Investors: Stephen Christie    +44 (0) 141 637 7111                            
  Media: Raymond Buchanan        +44 (0) 141 637 7111 / +44 (0) 771 326 1447    
  Brunswick: Patrick Handley     +44 (0) 20 7404 5959                            
 

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 Source: The Weir Group PLC via Globenewswire 
 HUG#2008060