Estate agent Countrywide has scrapped plans for a £20m payout to top bosses in the face of a shareholder revolt
The struggling estate agent is tapping shareholders for £140m but had proposed changes to its remuneration policy that would have handed chairman Peter Long, new managing director Paul Creffield and finance boss Himanshu Raja shares valued respectively at £6m, £8m and £7m.
The incentive scheme was due to be put to a shareholder vote next week alongside the £140m fundraising which forms part of a turnaround plan. Countrywide has issued a string of profit warning as it battles against a declining market in London and the south-east of England.
On Monday Countrywide said it had cancelled the “absolute growth plan” and would stick with its original pay deal after discussions with top investors.
It comes as investor advisory group Institutional Shareholder Services labelled the proposed scheme “excessive”.
“No compelling explanation has been provided as to why the proposed arrangement is essential to effectively implementing the group’s strategy and turnaround plan," ISS said.
Countrywide, the UK’s largest estate agent and owner of brands including Bairstowe Eves, Gascoigne-Pees and Hamptons International, launched a turnaround plan this month which aims to slash debts by £200m.
Earlier this year, Countrywide shares plunged more than 60 per cent after it said it would tap investors for cash to help stay afloat.
“The consultation meetings on remuneration with the major shareholders have been both constructive and supportive,” Countrywide said.
“There has been agreement that the proposals focus on rebuilding shareholder value as well as discussion as to whether that is sufficient to merit moving from the existing remuneration policy.
“Taking these factors into consideration, the board has decided that the directors' remuneration policy should not be amended and that the group's existing remuneration policy and long-term incentive arrangements as approved by shareholders at the company's annual general meeting held in 2017 will remain in place."
