'Road to hell' for pub companies is listening to investors not staff, says Wetherspoons boss

In Wednesday’s results he renewed the attack saying Wetherspoon’s management think the corporate governance code is too “City- and board-centric”, and focuses too much on meetings with shareholders.

Mr Martin said: “These meetings may be desirable or necessary, from time to time, but are much less important than directors of a pub company, for example, visiting its pubs and making a note of the comments of staff and customers (as is the practice at Wetherspoon), for the purpose of board and other discussions.

“The road to hell in pub companies lies in emphasising the views of shareholders over those of employees on the ‘front line’.”

The focus on compliance means companies can become preoccupied with the wrong things: “For example, many do not even recognise the danger from the VAT disparity, despite the high weekly level of pub closures which has lasted for many years.”

He also questioned whether compliance actually harms companies, drawing major retailers into the frame, saying “bearing in mind the problems in recent times at companies like Marks & Spencer, Tesco and Morrisons, with ever-changing compliant boards struggling to run what were previously successful and stable companies”.

He also hit out at “unfair” tax levels on the industry, saying the company paid levies of £600m – up almost £49m on last year – which worked out at an average of £662,000 per pub.

To raise the issue the company will support Tax Equality Day on September 24. This event highlights the 20pc VAT pubs pay on food and alcohol sales compared with the lower rate supermarkets pay. To mark the event, Wetherspoons will cut prices by 7.5pc for one day to reflect what it could charge the VAT rates were more even.

The final dividend, payable at on November 27, was held at 8p, meaning the total dividend remains at 12p.

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