Countrywide has revealed today that it has abandoned plans to pay its key directors a beefed up remuneration package that would have seen Executive Chairman Peter Long, Group MD Paul Creffield and Finance Director Himanshu Raja receive shares worth between them £20m.

The original deal agreed at the 2017 AGM has been reinstated after the company’s head of remuneration committee and non-exec director Cathy Turner concluded talks with the company’s major shareholders.

During these “constructive and supportive” discussions with shareholders including major stakeholder Oaktree Capital Management, the company has been politely told to focus on building shareholder value and get on with the new growth plan revealed on the 2nd of this month, and that at the moment the additional equity to be gifted to directors wasn’t justified.

As The Negotiator reported last week, a document was leaked from a leading London consultancy firm calling for shareholders to reject the improved remuneration package.

cash call

Although this deal has been rejected, there is a silver lining. Countrywide says it is now to get approval for its £140 million cash call at its AGM later this month.

The board released a statement this morning revealing it was “pleased with the support it has received from both existing and new shareholders in relation to the raising of additional equity”, it says.

“Subject to the approval of the issue on 28 August 2018, this will provide the Group with greater long-term certainty, flexibility and balance sheet strength, and will allow management to fully focus on the three-year turnaround plan and return to growth strategy.”