Jessica Fino 20 Jul 2017 11:43am

Wizz Air shareholders protest against PwC remuneration

Shareholders at the budget airline’s annual general meeting raised concerns about PwC providing audit and non-audit services to the company as well as being its main tax adviser

The resolution of agreeing the auditors’ remuneration package was passed with 72.5% of the votes, but 27.48% of shareholders were against it.

The company said the vote against the pay package resulted from the balance between audit-related fees and fees paid for taxation services.

As a result, Wizz announced it will tender the statutory audit in the 2018 financial year, in a bid to separate the audit and non-audit services.

PwC has been Wizz Air's auditors since 2007. Wizz said the selection of the Big Four firm to provide taxation services reflected their “in-depth knowledge” of Wizz Air's business from before the company's successful admission to the London Stock Exchange. 

It added, “The board and audit committee recognise the importance of a clear division of service providers for the provision of audit and non-audit services and, in particular, the company's main tax adviser.

“The tendering process will also ensure that audit and non-audit services will be properly separated.

“The committee trusts that these measures will overall support the independence, objectivity and value for money of the audit process.”

The new audit regime for auditors in the European Union came into operation last year, introducing mandatory audit tendering, rotation of auditors and a ban on most non-audit services (NAS) for audit clients.