A bumper pay and share package for LSL directors and senior executives was rejected by more than a third of shareholder votes at this week’s estate agency group AGM.

In what is a blow to the estate agency firms’s plans, just under 36% of the shareholders’ votes were against two resolutions on directors’ renumeration and a long-term incentive plan, which still passed as more than 50% voted in favour.

Less than two months after revealing huge profit increases, the group had informed the City that the total pool available would be based on up to 10% of the growth in the company’s equity value.

We believe that the scheme has wide-ranging support”.

Adrian Collins, Non-Executive Chair at LSL (main picture), said at the time: “I want to ensure that the focus of LSL’s executive management team is on driving sustainable, profitable value growth and real, share price related returns from which all shareholders may benefit.

“The scheme we are proposing is designed to achieve exactly that. Having engaged in an extensive consultation exercise with our major shareholders both in the UK and the US, we believe that the scheme has wide-ranging support”.

Specific concerns

Bjut in response to the shareholder vote, the board said: “The Board has noted that around 35% of votes were voted against the two resolutions proposed to the General Meeting.

“The views of all of our shareholders are important to us and we will enter into a period of further consultation to understand specific concerns. In accordance with the UK Corporate Governance Code, we will publish an update in due course.”

In a statement released prior to the AGM, the group revealed expansion into four new territories, including two new franchisees.

In March, it released its full-year results to the City with group operating profit up a whopping 484% to £21.9 million.