Almost one-in-five shareholder votes failed to support Carphone Warehouse’s remuneration policy at the company’s annual meeting.
About 15 per cent of the votes cast were against the creation of two new long-term incentive plans for management, and another 4 per cent abstained.
Under the incentive plan, senior executives and directors will initially receive shares in Carphone’s two main businesses, TalkTalk and Best Buy Europe, that will only vest and convert into shares if individual targets have been achieved. Charles Dunstone, chief executive, will not participate in the scheme.
The incentive arrangements will be put in place before the demerger of Carphone’s retail and telecoms interests which is likely to happen next March.
Best Buy Europe, the consumer electronics retailer that is half owned by Carphone Warehouse, has signed leases on buildings for its first two “big box” stores that will open early next year.
Roger Taylor, chief executive of Best Buy Europe and Carphone’s finance director, said on Thursday that the venture had also identified three other sites where it hoped to open large stores in early 2010.
Meanwhile, Best Buy Europe, which is half owned by Best Buy, the US consumer electronics retailer, reported revenue of £773m for the three months to June 30, up 6 per cent compared with the same period last year.
The pound’s weakness against the euro contributed to most of the revenue growth, given that Best Buy Europe has mobile phone retail stores across much of continental Europe as well as the UK.
On a constant currency and like-for-like basis, Best Buy Europe’s revenue rose by 0.2 per cent.
Best Buy Europe sold 2.7m new mobiles in what is its first quarter, up 3 per cent. The company is increasing its market share through sales growth, but its gross profit margin declined.
Best Buy Europe is seeking to change the face of European consumer electronics sales with its big box stores.
The stores will cover 30,000 square feet or more, and sell everything from cameras to televisions.
Mr Taylor said Best Buy Europe had identified five sites where it hoped to open big box stores early next year. He added 10 additional potential sites had also been pinpointed.
Talk Talk, Carphone’s telecoms business, reported revenue of £340m for the first quarter, down 2 per cent.
The business added 47,000 new broadband customers, taking the total to 2.9m.
Carphone this month completed the acquisition of the UK broadband business of Tiscali, the Italian telecoms company. Carphone will become the second largest UK broadband provider.