Foxtons has revealed problems with the virtual voting system during its May AGM after a major shareholder was unable to vote on the company’s director pay and bonus package.
This might not be noteworthy within other companies, but it is not the first time Foxtons has had problems with its bonus scheme.
At Foxtons’ 2019 Annual General Meeting shareholders staged a significant rebellion – passing all resolutions with 94% of votes except its remuneration policy, which garnered just 78%.
This prompted a new policy to be issued following discussions with its ten top shareholders. This was then presented at its 2020 AGM on May 13th at which the technical problems occurred.
“Following the AGM it came to our attention that one of the Company’s largest shareholders had been unable to cast all their votes in favour of Resolution 2 due to operational difficulties resulting from Covid-19,” a company statement says.
“Had this shareholder been able to vote as intended, Resolution 2 would have obtained votes in favour of well over 80%.”
Foxtons’ boards says it believes the revised policy approved at the 2020 AGM is the “best structure to provide strong alignment with shareholders’ interests in a highly cyclical business such as Foxtons”. the company says.
“We therefore still consider this policy to be in the best interests of the company and the shareholders, and do not intend to propose further changes at the 2021 AGM.”
The new remuneration report reveals that the largest recipient of the bonus scheme was CEO Nic Budden. This year he will be paid a basic salary of £569,400, a rise of 2.5%.