Chris Spencer-Phillips, a ShareSoc Director, attended the AGM of Real Good Food last week. This is typical of many AIM companies in that it has very poor corporate governance. They have an Executive Chairman, who refused to answer the questions from a shareholder at the meeting. In addition they have pay which is wildly out of line with the profitability and general size of the company. That includes £798k (including consultancy fees) to the Chairman, plus share options; and one of the Non-Executive Directors gets £135k which for an AIM company probably takes some beating.
As we said to the FRC at a meeting with them this week, corporate governance in many AIM companies is a major problem and unfortunately the LSE don’t seem to wish to tackle this problem. All shareholders can do in the meantime is avoid such companies.
You can read Chris’s full report on the AGM here on the ShareSoc Members Network: http://sharesoc.ning.com/forum/topics/the-agm-forum