Shareholder anger forces Countrywide to abandon pay plan
Countrywide has rowed back on plans for an executive pay proposal in the wake of a potential shareholder rebellion.
The UK’s largest independent estate agency drew anger from investors last week over a new incentive scheme which would mean cash payouts of over £20m for the beleaguered firm’s top bosses, including a £6m windfall for under-fire chairman Peter Long.
However, Countrywide said yesterday that the proposals, which come as part of a £140m rescue fundraiser to keep the company afloat, would no longer be put to the vote at the company’s upcoming annual general meeting (AGM).
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Sky News reported that a number of leading City institutions planned to oppose the new incentive scheme, which the influential shareholder advisory the Institutional Shareholder Services (ISS) had warned those with a stake in Countrywide to vote against.
The company’s existing remuneration policy and long-term incentive arrangements as approved by shareholders at its annual general meeting held in 2017 will remain in place, Countrywide said.
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Two other board executives – Paul Creffield and Himanshu Raja – were in store for shares valued at more than £8m and £7m respectively, bringing the potential total cash sum for the three bosses to over £20m
With brands including Bairstow Eves and Gascoigne Pees, Countrywide posted its second profit warning of the year earlier this month, pushing shares down more than 60 per cent.