Troubled housebuilder Vistry Group refused to be bowed by shareholder pressure over the doubling of its chief executive’s salary and bonus package.
Greg Fitzgerald, chief of the London-listed developer, could see his total remuneration package rise from £2.5m to £5.6m.
Under a new policy, Fitzgerald’s base salary is increasing by 10 per cent to £800k and his annual bonus of 150 per cent is rising to 300 per cent.
A slim majority gave the package a green light at the company’s extraordinary general meeting last summer but 45 per cent of shareholders voted against the move.
The opposition was enough for the Vistry board to take note.
Fitzgerald’s generous pay rise was announced amid a torrid time for housebuilders, as high mortgage rates and a strain on the economy lowered demand for new residential properties.
Today, the committee said it “understands” that the reasons for the number of votes cast against was “primarily concerned with the step up in maximum opportunity for the chief which was in excess of usual levels within the FTSE 250”.
Greg Fitzgerald
They added: “The committee acknowledges these concerns; however they maintain their view that the positioning of remuneration under the new policy is aligned with a framework that is highly performance orientated, and emphasises variable, equity-based remuneration designed to incentivise growth and creation of shareholder value over the long term.”
“The company remains committed to ongoing shareholder engagement and will continue to do so to ensure that the Company understands shareholders’ views and is able to consider feedback, as well as to provide clarity on the Company’s approach to remuneration going forward.”
In recent months the FTSE 250 housebuilder has reported an improvement in the housing market.
A trading update, published last month, showed pre-tax profits for 2023 are ahead of its previous guidance and in line with last year at £418m.
The group has also slashed its debt pile to £90m, well down from the 30th June position of £328.7m.