Over a fifth of Foxtons shareholders voted against a motion to approve the way its senior directors are paid during the company’s AGM yesterday in London.
Its latest remuneration committee’s report revealed that if Foxtons achieves its ‘maximum performance’ this year CEO Nic Budden will be paid £1.74 million and CFO Mark Berry £779,000, achieved through a mixture of a £300,000 base salary, a variable element and a long-term ‘bonus’.
Although the 21% shareholder revolt was not enough to defeat the resolution, it has rattled its board enough for it to issue a statement on the subject, noting that: “The Board acknowledges the concerns raised by Shareholders in particular regarding the FY2018 bonus outcomes,” it says.
“As stated in our Annual Report, the Committee will be conducting a detailed review of the Remuneration Policy later this year, which will be submitted for Shareholders’ approval at the 2020 AGM.
“As part of this review, we will take into account the changes in the UK Corporate Governance Code along with shareholder and UK remuneration governance guidelines.”
The Foxtons board says it wants to maintain ‘an open and transparent dialogue’ with its shareholder swho will be consulted during its remuneration review.
This is not the first time shareholders have flagged up their displeasure over the company’s remuneration policies. At last year’s AGM 13% voted to approve its Annual Report on Remuneration, and 28% voted against approval of the directors’ Remuneration Policy.
The shareholder revolt coincided with a trading statement that revealed another drop in revenue for the company for the first three months of the year.