Shareholders in Rentokil Initial, the troubled pest-control and parcel-delivery group, vented their frustration over the company's fall from grace at its annual meeting yesterday.

Most of the criticism centred on the performance of City Link, the parcel-delivery business, which the group has struggled to turn around after its botched merger with Target Express. City Link's problems have sparked a series of profit warnings, which ultimately cost Doug Flynn, Rentokil's former chief executive, his job.

Investors criticised Andrew Macfarlane, the finance director, the group's plans to cut its dividend significantly and an incentive scheme under which its new management team could net nearly £100 million in bonuses if they revive the business over five years.

One shareholder bemoaned the fall in the share price. “My shares were once worth £100,000 - now they're worth peanuts,” he said. “What about us? What about our dividends? Why should we have more patience?”

A former employee said that it was “astonishing that an international company could find such a black hole”, referring to the City Link unit, which has given warning of big full-year losses, and questioned Mr Macfarlane's role as a financial controller.

A shareholder who said that he had previously worked for the company for 33 years, said that he had been foolish to hold on to his shares and raised concern over the safety of former workers' pensions.

John McAdam, the new chairman, who took up his post at the end of the meeting, said that he “didn't join the business to be associated with failure” and was confident of a turnaround.

Alan Brown, the new chief executive, said that he was optimistic about Rentokil's longer-term prospects.

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