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Shareholders have rejected pay deals worth more than £200 million for three former executives and the boss at aerospace giant Melrose Industries.

The chairman of the London-listed company told investors “I understand your concerns” after holding the vote at its annual general meeting (AGM).

Some 66% of shareholders voted against the directors’ remuneration on Wednesday.

Figures published in its annual report last month show executive directors took home bumper pay deals in 2024 following the end of a four-year performance plan.

About £207 million was awarded as part of the long-term incentive plan which was introduced in 2020, and granted top executives shares worth 7.5% of any increase in the company’s market value.

During that period, the share price of the company surged, resulting in big bonus payouts for the top bosses.

Three of the executives receiving bonus awards worth more than £50 million each – Christopher Miller, Simon Peckham, and Geoffrey Martin – have now left the business.

Chief executive Peter Dilnot received £45.4 million last year in pay and bonus awards. The majority of shareholders nonetheless voted in favour of his re-election.

Melrose’s chairman Chris Grigg told shareholders at the AGM: “First, I hear you and I understand your concerns.

“Secondly, in light of the feedback, we will be engaging with shareholders to ensure our future directors’ remuneration policy is in line with our changed business model.”

The vote comes after Mr Dilnot said new US tariffs had created “additional complexity” across the aerospace industry.

But he said Melrose had acted “swiftly” to mitigate the potential impact.

This included adjusting its supply chain, negotiating with customers and suppliers, and the use of “drawback”, which involves reclaiming taxes on imported goods that are later exported.

The company still expects to report an adjusted operating profit of £700 million for 2025 – although this guidance does not include the impact of tariffs.

Revenues are forecast to come in between £3.55 billion and £3.7 billion.