Vistry has tried to placate shareholders after scrutiny over the multiple roles its boss Greg Fitzgerald holds at the housebuilder and competing companies.
Fitzgerald has served as executive chairman since May, meaning he’s head of both the board of directors and the company and for which he receives a salary of around £2.5m, according to The Times.
In a statement today, Vistry said Fitzgerald’s role “was a departure from the UK Corporate Governance Code” and is aware of the “concerns from some shareholders”.
“The board has actively engaged with shareholders both before and after the AGM in respect of a range of corporate governance matters and has a detailed understanding of shareholder views,” Vistry added.
Only one in five shareholders – 99.3 per cent – voted in favour of Fitzgerald’s re-election, with the rest voting against or abstaining.
Vistry added that it elected Rob Woodward as a director to provide additional oversight on governance matters and “serve as an alternative point of communication for investors and the other non-executive directors”, which would secure an “appropriate division of responsibilities between management and oversight.”
Fitzgerald has also come under fire for his investments in other firms, which include potential competitor Baker Estates and Vistry supplier Ardent Hire.
“Greg Fitzgerald’s multiple roles and significant stakes in related companies raise serious corporate governance concerns,” said Sarah Wilson, boss of advisory firm Minerva Analytics told The Times.
“The potential conflicts of interest and inadequate disclosures by Vistry undermine shareholder trust and call for immediate scrutiny and transparency. Investors deserve clarity on whether decisions are driven by strategy or self-interest,” Wilson added.
It’s another headache for a firm which has issued two profit warnings in the last two months, and has seen its share price halve in that time.
The first warning came in early October, when Vistry told markets this morning that it had “recently become aware” of higher-than-expected costs in nine of its 300 developments.
Vistry said that the schemes’ cost, including some large builds, has been understated by around 10 per cent and subsequently lowered its profit guidance for 2024 by £80m.
The second was earlier in November, after it revised its previous £80m hit to profit to £165m, including an additional £25m for 2024.
Vistry declined to comment.