GAM Holding has announced a large-scale share buy-back programme after suffering a defeat from shareholders over executive pay at the annual general meeting on Thursday.
The new three-year share buy-back scheme will see the group repurchase up to 16 million shares, the equivalent of 10% of all GAM shares.
This does not include 0.6 million shares that were bought back under previous buy-back programmes, which will be cancelled. This was decided during a shareholder vote at the annual general meeting on 27 April 2017.
The move to buy back shares comes after a backlash from shareholders, as they rejected the proposed management pay.
Recently, the Zurich group has dealt with criticism from shareholders including pressure from activist shareholder RBR Strategic Value, which put forward board member candidates for election. This bid was rejected during the annual meeting.
The programme has been launched by GAM as its previous 2014-2017 scheme comes to an end on 27 April 2017. The new programme is focussed on capital reduction and will last until 30 April 2020.