hareholders of housebuilder Vistry have made it clear they are unhappy with the company’s new pay policy for its top bosses as it passed with just a slim majority.
In a meeting on Wednesday, around 45% of votes were cast against both the new policy and amendments to the long-term incentives that can be paid to executives.
The new policy will increase chief executive Greg Fitzgerald’s pay to £800,000, more than double the annual bonus he can receive and add 50% to his potential long-term incentives.
It means that his maximum pay package will grow from £3.4 million to £5.6 million.
The vote comes two months after Vistry was dealt another bloody nose by shareholders over the company’s remuneration report for last year.
Shareholder adviser agencies ISS and Glass Lewis had both recommended that investors vote against the report at the May annual general meeting. More than 47% of shareholders took their advice.
On Wednesday the business said that it was “pleased” that the resolutions at the meeting had passed. It said that the new policy is designed to incentivise the leadership to create value for shareholders.
“While pleased that all resolutions have been approved by a majority of shareholders, the board notes that a significant number of shareholders opposed,” the two votes, the company said.
“Ahead of the general meeting, the board and the remuneration committee consulted extensively with shareholders in relation to the proposed revised directors’ remuneration policy, which was designed following the significant enlargement of the business and to incentivise the creation of shareholder value over the long-term.
“The board is grateful to shareholders for their engagement and acknowledges that through the engagement process shareholders expressed different perspectives.”
The company said it would continue to engage with shareholders to understand their feedback.
Vistry was created in 2019 when Bovis Homes and Galliford Try’s housebuilding arm merged.