Argo agrees to cut board numbers and how they are paid

Argo Group has introduced a number of changes to the way board members are elected and how they are paid.

The move follows an acrimonious battle with activist shareholder Voce though Argo did not refer to that in announcing the changes.

The company has confirmed it will introduce proposals to cut the number of board directors from 13 to 11 and change the way they are elected, as well as confirming changes to executive pay.

The proposal to begin a ‘phased declassification of the board’ would end the staggered elections of directors and will mean the entire board stands for election annually after the 2022 AGM.

The company will present the proposed board changes, which are part of its revision of its corporate governance practices, at the 2020 annual general meeting.

Gary Woods, Argo chairman, said: “These measures support continued value creation for all our shareholders and demonstrate our commitment to ensuring alignment with our shareholders.

“We value the input we receive from our shareholders and maintain a productive dialogue with them.”

The re/insurer’s board also unanimously approved changes to the company’s executive compensation programme to “enhance the alignment between compensation and long-term shareholder value creation”.