Stubbed out: Boss of tobacco giant loses £3m pay rise after shareholder revolt forces unprecedented U-turn 

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Shareholders scored a major victory against fat cat pay as they forced a FTSE 100 giant to back down over plans to give a boss a £3million pay rise.

Cigarette heavyweight Imperial Brands bowed to an investor rebellion by withdrawing a bumper pay rise for Alison Cooper, its chief executive.

Cooper, 50, who has been at the helm of the firm, known for its Davidoff and Lambert and Butler cigarettes, since 2010, pocketed £5.5million last year, up from £3.6million the year before.

Life's a drag: Cigarette heavyweight Imperial Brands bowed to an investor rebellion by withdrawing plans for a bumper pay rise for its chief executive Alison Cooper

Cooper is renowned for her occasional moments of flamboyance – she has been spotted driving a Porsche Carrera and is said to frequently smoke cigars.

But under a new wage policy the married mum of two was due to see her pay rise to £8.5million. 

Investors were going to vote on it next month but the plan sparked anger from campaigners who have demanded curbs on excess.

Among those was investment giant BlackRock, the second biggest shareholder.

However, in a surprise U-turn yesterday, Imperial Brands said it would not hold the vote.

Chairman Mark Williamson said: 'We have been actively engaging with shareholders for some time and while we received considerable support, it is clear that views have changed over that time and that the right course of action now is for the board to withdraw the resolution.'

Under the plans, the chief executive's bonus alone could have risen by more than £1million. 

David Haines, chair of Imperial's remuneration committee, had justified the rise for Cooper and other executives by saying that their pay was 'significantly below the average' for companies of its size.

The firm also claimed it feared losing or being unable to attract the very top talent. The rethink has been billed as a win for investors and has sparked suggestions other brands will soon follow suit.

GlaxoSmithKline is discussing the salary of its incoming chief executive Emma Walmsley and three of Imperial's four biggest shareholders – Capital, BlackRock and Legal and General – make up the trio of investors at that firm.

However Stefan Stern, director at the High Pay Centre, warned: 'If we have one more company rethinking, that's good news, but we should not exaggerate its significance at this stage.'

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