From the article below (more in the comments):
Games Workshop, the creators of Warhammer, have found themselves at the center of a drama that even Tzeentch might envy. But this time, itās not about rule changes, lore retcons, or miniature pricesāitās about money. A good chunk of shareholders, like BlackRock, Vanguard, and Fidelity, recently raised their proverbial pitchforks over executive pay raises that could rival the vaults of the Imperial Palace. Letās break down exactly why Games Workshopās AGM (Annual General Meeting) looks to have turned into an intense session of āWhoās getting paid too much?ā
What Sparked the Shareholder Backlash?
Imagine youāre a loyal shareholder. You love the company; you love the lore (or maybe just the dividends.) Then you notice your favorite gameās CEO, Kevin Rountree, is now earning close to three times what he made just four years ago. Not bad, right? Unlike last yearās hefty payout, thereās no new massive surprise dividend this year to sweeten the deal for you. For nearly 25% of the shareholders, this may have felt like a power move from the board while their wallets stayed the same.
Summary of the 2024 AGM Voting Results
At the 2024 AGM, shareholders were given the chance to vote on resolutions, including two particularly spicy ones, Resolutions 10 and 11. The problem? We donāt actually know what they were about specifically (because nothingās ever that simple). However, when almost a quarter of your shareholders object to something, you might want to pay attention. The board said theyād ācheck inā on the matter in about six months. Sounds like a long cooldown, doesnāt it?
Letās face itāwhen people see the phrase āexecutive pay hike,ā it tends to stir feelings. And when that increase more than doubles the salary of key figures in the company (not to mention even higher jumps for non-executive directors), shareholders begin to question the fairness of the power balance.
The Role of Major Institutional Investors (Fidelity, Vanguard, BlackRock)
Financial titans. Fidelity, Vanguard, BlackRockānames that could almost be mistaken for rival factions in a new Warhammer expansion. These big players control vast chunks of shares, and theyāre not the type to be amused by excessive pay hikes without corresponding gains. When institutions this large feel their investments arenāt being properly managed, even Space Marines couldnāt save you from the incoming pushback.
Kevin Rountreeās Salary: A Significant Jump Since 2020
Speaking of big moves on the battlefield, Kevin Rountree has been leveling up faster than an overfed Tyranid. Back in 2020, Rountreeās base salary was around Ā£700,000. By 2024, heās knocking on the door of Ā£2 million annually. Thatās quite the pay riseāespecially when you add another Ā£2 million in stock at his disposal. Itās the kind of reward youād expect after single-handedly slaying a dragon (or managing a tabletop empire). But in the eyes of some, this rate of salary increase may seem like a special character in the rulebook getting too many overpowered abilities at once.
CEO Compensation Tripled in 4 Years
Rountreeās income has tripled in four short years. Thatās rightāthreefold in the time it takes for a typical Warhammer edition to come and go. When you see a leap like that, eyebrows tend to raise faster than the point costs in a new codex. While Games Workshop has undoubtedly been successful, some shareholders might be wondering if itās necessary for the CEOās pay to inflate quite so aggressively, especially when dividends donāt seem to be flying in as frequently as some would hope.
Rountreeās Ā£2 million package includes his base salary, bonuses, and a little something extra in stock awards. Bonuses doubled between 2020 and 2021 when the latest remuneration policy was given the green light. With his base salary and bonuses alone, the man is pulling in enough to buy more than a few Battleforces every year (and maybe even have some extra for Forgeworld minis).
Impact of the Remuneration Policy Approved in 2021
That brings us to the 2021 remuneration policyāthe mystical document that opened the vaults of the empire for Rountree and the board of directors. This policy essentially sets the guidelines for how executives get paid, and once approved, it led to significant salary increases. While it clearly worked for some (looking at you, Rountree), a growing group of shareholders seem to be questioning if it went too far. Perhaps the salary buffs have become a little unbalanced, and like any game, a rebalance might be in order.
Board Member Pay Raises: The Source of Shareholder Concern?
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Itās not just Kevin Rountree enjoying a nice pay rise. The rest of the board members have seen their salaries swell, too. And some of those increases are enough to make even the wealthiest Eldar blush.
Non-Executive Director Pay: A Fourfold Increase
Take non-executive director John Richard Allistair Brewis, for instance. His pay has jumped from a modest Ā£50,000 to a whopping Ā£200,000. Thatās four times the amount in just a few years! This isnāt a case of modest inflation adjustmentsāthis is like promoting a single guardsman straight to Chapter Master. Unsurprisingly, this has ruffled more than a few feathers among shareholders.
The rest of the board isnāt missing out either. Many of them have seen increases of 20-40%, making 2024 the year of financial gainsāat least for those in the upper echelons. For shareholders, who might have expected this year to be more conservative given the absence of last yearās dividend, these increases seem to stand in stark contrast to what was actually delivered in financial results.
Key Issues Driving the Shareholder Revolt
So, why exactly are shareholders so agitated? It isnāt just the oversized paychecksāthereās a broader sense of dissatisfaction bubbling under the surface. After all, when youāre accustomed to regular dividends and profits, you start to ask questions when those things suddenly dry up, and the board is walking around in golden armor.
Lack of Transparency: What Exactly Did the Shareholders Reject?
The frustrating thing for many is that no one really knows what specific part of the remuneration policy has ticked everyone off. Sure, Resolutions 10 and 11 at the AGM were rejected by about a quarter of voters, but without a clear breakdown of what those resolutions covered, itās like trying to guess the outcome of a battle without knowing which armies are involved.
If youāre wondering what Resolutions 10 and 11 were all about, join the club. Games Workshop has kept the content of these resolutions under wraps, leaving everyone on the outside speculating. Given the backlash, itās safe to assume they had something to do with those ever-inflating paychecks that have doubled and even tripled for some since the last policy was voted into place. There are lots of theories with no specifics, but there are no real answers.
Massive Salary Increases Amid Flat Financial Performance
One of the main gripes from shareholders may be that spectacular financial results arenāt exactly backing up these salary increases. Itās one thing to reward executives when the company is raking in profits, but Games Workshopās latest performance? Well, itās been more in line with expectations than anything earth-shattering.
2024 Trading Update: In Line with Expectations, But No Dividend
In September 2024, Games Workshop gave its quarterly trading update, and letās just say it wasnāt the showstopper everyone was hoping for. The board essentially said, āHey, we did about what we expected,ā which, while acceptable, isnāt exactly cause for a celebration. Hereās the kicker: no extra dividend announcement. Thatās rightāno surprise āwe made more money than expectedā dividend like in 2023. For shareholders hoping for a repeat of last yearās bumper payout, this news may have feel flat.
And no wonder, Games Workshopās earnings did average, with a terrible Skaventide release, New previews canceled across the board, and months between 40k release, hobbyists donāt seem to be as engaged as they were. Comparison to 2023: Surpassing Expectations and Announcing Dividends
Letās rewind to 2023. Games Workshop wasnāt just meeting expectations; it was smashing them. They declared a 50p dividend, and shareholders were ready to paint the town red, Blood Angels Red that is. But in 2024, with no surprise windfall and an uninspiring performance, itās no wonder the lack of a dividend may be stinging a bit more than usual.
Frustration with Dividend Policy
Shareholders may have been, quite frankly, miffed. Games Workshop has a policy of paying dividends when thereās surplus cash. Itās a simple rule that investors had come to love, like a reliable tech-priest always ready with a repair protocol. But this year, the boardās response seemed to be: āWell, we did okay, but no extra cash for you.ā That leaves shareholders wondering if the surplus cash ended up in the pockets of the executives instead.
Why No āSurplus Cashā Dividend Like Last Year?
Itās the question on everyoneās mind. If 2023 saw a whopping dividend and 2024ās performance wasnāt catastrophic, why no similar payout? For many shareholders, it may feel like the board is pulling a sneaky maneuver hereāpaying themselves handsomely while keeping the profits from being shared with those who actually own the company. Itās a bit like watching your favorite Chapter Master keep all the loot for themselves after a glorious battle.
Institutional Shareholders & Their Influence
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When youāve got investors like Fidelity, Vanguard, and BlackRock on your cap table, the stakes are high. These are institutional shareholders with a huge influence on how the company is run. If theyāre not happy with the current state of affairs, changes are bound to come.
These institutional powerhouses arenāt just holding a few sharesāthey collectively own big chunks of Games Workshop. If they decide the board is heading in the wrong direction, theyāve got the voting power to start shaking things up. For a company that prides itself on its careful strategy and long-term vision, this might feel like a squad of Terminators landing right in the boardroom.
**The Impact of Concentrated Ownership on Board Decisions
**With so much power in the hands of these institutional shareholders, the board canāt just ignore them. If theyāre upset over pay hikes, dividend policies, or lack of transparency, the board might be forced to rethink some decisions. When the big boys start asking questions, the board has no choice but to answerāprobably with fewer luxurious pay packages next time.
How Funds and Firms Are Responding to the Pay Hikes
Itās hard to say exactly how Fidelity, Vanguard, and BlackRock feel about the executive pay increases, but the fact that nearly 25% of shareholders rebelled gives a pretty strong clue. These institutional investors arenāt known for tolerating unnecessary extravagance, especially when the companyās financial performance isnāt smashing expectations. Their response could be anything from a stern word at the next AGM to actively pushing for new board members more aligned with shareholder interests.
Whatās Next for Games Workshop?
As we wait for the boardās response, everyoneās left wondering: What happens now? Will Games Workshop adjust its executive pay structure? Will shareholders get a bigger piece of the pie next year? Itās a waiting game that feels almost as tense as a Warhammer tournament final.
The Boardās Response to Shareholder Concerns
So far, the board has promised to look into why shareholders are upset and report back in six months. Itās a bit like getting a cliffhanger ending in a Black Library novel. Will they scale back the pay hikes? Reintroduce surprise dividends? The response could shape Games Workshopās relationship with investors for years to come.
One thingās for sure: this isnāt the last weāll hear about executive pay at Games Workshop. If the current pay structure continues to cause unrest, there could be reforms on the horizon. The company might have to think twice before handing out another round of hefty raises while keeping shareholders on the financial backburner.
Timeline: Follow-Up Report Promised in Six Months
The board has promised to revisit the shareholder revolt in six months. Thatās practically an eternity in the world of business, but it gives everyone time to cool off and for the board to figure out their next move. Until then, the shareholders will be watching closely, waiting for a sign that their concerns are being taken seriously.
Conclusion
Best Gifts warhammer 40k games workshop of the yearIn the end, Games Workshopās shareholder revolt is a classic tale of power, money, and strategyāone that even a Warhammer player would appreciate. The key takeaway? Balancing executive pay with shareholder interests is just as tricky as any in-game tactic. Whether itās adjusting the remuneration policy, delivering on dividends, or just keeping everyone on the same page, the board will have to strategize carefully if they want to avoid another uprising. After all, no one likes to be on the losing side of a battle.
Is this the same BlackRock thatās the mercenary contractor group?
The mercenary army group is called Blackwater. I think they arenāt affiliated, though at one time they were owned by BlackRockās sister company, Blackstone.
Blackrock is an investement firm, and is more focused on banking, lending and stocks.
Blackstone is Blackrockās sister investment firm, which also owns a bunch of land and buildings in the US (at one time they were proclaimed as the biggest landlord in the US). Also itās heavily invested in military industry. It also owns a mercenary firm, though itās much smaller than Blackwater, and much less notorious.
Blackwater is a mercenary army that was heavily involved in the occupation of Iraq and Afghanistan, and are widely known for committing attrocities during that time, such as indiscriminate mass killings of civilians, kidnappings and torture.
Understood.
