About 44% of votes at the general meeting of Sheffield-based building materials supplier SIG plc were cast against a one-off payment of £375,000 to its CEO Steve Francis.

Proxy advisers Pirc, Institutional Shareholder Services and Glass Lewis had recommended shareholders vote against the payment, and the Investment Association’s Ivis voting service “red flagged” the payment.

SIG shares have fallen more than 70% in the past year and it recently announced an equity raise with US buyout firm Clayton, Dubilier & Rice as it unveiled disappointing annual results.

In a stock exchange statement, SIG said: “In relation to resolution 5, the board welcomes the majority support for the one-off payment of £375,000 to the CEO of the company outside the terms of the directors’ remuneration policy but acknowledges that a significant number of votes were cast opposing the resolution.

“The board intends to consult with shareholders on amendments to the directors’ remuneration policy, including with respect to long term incentive plan arrangements, over the coming months and will include consultation on resolution 5 with relevant shareholders as part of this process.

“The board expects to provide an update on the company’s website on this consultation process and any actions taken or proposed to be taken within six months of today’s date in accordance with the UK Corporate Governance Code 2018.”