- Sir Michael is under pressure to justify paying his two sons enormous sums
- Over 25% of shareholders of London & Associated Properties voted against the pay report which included nearly £500,000 for his elder son, John
- It followed a 29% revolt against pay at Bisichi Mining, run by his other son
Shareholder rebellion: Tory donor Sir Michael Heller
Tory donor Sir Michael Heller, who has been hit by shareholder revolts at two of his companies, is under pressure to justify paying his two sons enormous sums for their roles as chief executives.
On Tuesday, more than a quarter of shareholders of London & Associated Properties voted against the pay report which included nearly £500,000 for his elder son, John.
The true level of protest is much higher as 56 per cent of the company is controlled by the Hellers.
It followed a 29 per cent revolt against pay earlier this month at Bisichi Mining, run by Sir Michael’s other son Andrew, who was paid almost £900,000 last year despite the company having a market value of just £10 million. LAP owns 42 per cent of Bisichi.
Shareholders are now demanding that Sir Michael, who chairs both companies, address their concerns.
Paul Mumford of Cavendish Asset Management, a shareholder of LAP and Bisichi, said: ‘They say that communication with shareholders is a matter of priority. Well, it’s not.’
Flashback: How we covered the story last week
Andrew Perloff, the property tycoon who owns the Beales department store group, tabled a resolution for the Hellers to take LAP private and buy out minority shareholders but it failed, because the Hellers control 56 per cent and opposed the idea.
The Heller family made its fortune by turning a jam company into the nationwide KP Nuts brand.
Perloff said at the meeting that he was sure Sir Michael ‘would not want to be remembered as the man who made his family rich by paying his shareholders peanuts for dividends and giving his sons all the jam’.
When questioned about the pay at the heated meeting, the board said it had looked at the examples of several similar-sized companies to devise the chief executive’s pay – but failed to name any.