A discussion about Directors Remuneratio

katy123

I've come across a company that one of the director owns around 55% of the shares. My concern with this is that being the majority holder he can vote in favour of the "directors remuneration report" all the time. It was quite shocking when I found out the directors were getting 200kplus remunerations. I know this is common but surely this is at the expense of the company=shareholders. My concerns are making me think twice about investing now as I don't want these fat cats giving themselves 20%plus annual increases but the earnings/stock price is tanking. My questions are:

1. Can shareholders vote down the "directors remuneration report"? if yes, I remember reading somewhere that even if it is voted down, the board does not need to take action.
2. with this particular company I am referring to, can the director (with 55%holding) simply one day say stop dividends and up his remuneration to £1m. If yes, can shareholders have no say to this?

We seem powerless? or is it really not that bad? Would greatly welcome your comments.