Home Retail sees off investor rebellion

A resolution to approve a new executive bonus scheme, which will see some managers paid up to 150 percent of their salaries in cash, was passed.

However, 35.7 percent of votes cast, representing some 194 million shares, went against the motion, while holders of a further 44.1 million shares abstained.

Home Retail defended the move, saying the changes result in a better balanced package of incentives.

"We are pleased that the majority of those shareholders who voted, including our largest shareholders, have supported these changes. However, the committee has taken note of the comments made by those shareholders who have expressed concern and will take these views into account in the ongoing monitoring of the effectiveness of the group's incentive arrangements," Home Retail said in a statement on Thursday.

The Association of British Insurers, whose members control around 15 percent of shares traded on the London Stock Exchange, last week issued a "red top" alert on the scheme as part of a widespread crackdown on excessive pay packages.

The alert signalled the highest level of concern about governance at the group and was the latest in a number of challenges to companies' remuneration policies by investors.

Marks & Spencer executive chairman Stuart Rose is expected to come under renewed pressure for combining the roles of chairman and chief executive, against corporate governance guidelines, at the group's annual shareholder meeting next week.

(Reporting by Rhys Jones; editing by Elaine Hardcastle)