The CEO of one of the UK’s leading aerospace companies has recognized the extent of shareholder discontent regarding executive compensation in a personal address ahead of the annual shareholder meeting.

Despite Chris Grigg, the chairman of Melrose Industries—a firm that has shifted its focus solely to aerospace—stepping in, a substantial 65.6 percent of voting investors opposed the company’s remuneration report.

Large compensation packages were awarded to Christopher Miller, Simon Peckham, and Geoffrey Martin, former executives no longer with the organization, each receiving over £50 million through a long-term incentive plan established five years prior. In addition, Peter Dilnot, the CEO, earned £45.4 million in total compensation and bonuses last year.

The incentive program permitted executives to gain shares equivalent to 7.5 percent of any rise in the FTSE 100 group’s market value. According to Melrose’s annual report, this remuneration approach resulted in payouts totaling around £211 million in 2024.

In his initial comments to shareholders, Grigg stated, “I explicitly acknowledge that the proxy agencies have advised against the company’s 2024 directors’ remuneration report. Additionally, I am aware that some shareholders share this view.”

Grigg further remarked, “I want to emphasize two points. Firstly, I hear you and comprehend your concerns. Secondly, based on this feedback, we will engage with shareholders to align our future directors’ remuneration policy with our evolving business strategy.”

Melrose Industries acquired the aerospace segment as part of its takeover of GKN in 2018. Subsequently, GKN’s automotive, powder metallurgy, and hydrogen segments were separated to establish Dowlais Group, which has recently accepted a cash-and-shares acquisition offer from American Axle, valuing the company at £1.2 billion.