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Agencies & People

Purplebricks awards CEO and CFO new ‘golden handcuffs’

Pair are being incentivised to stick with the hybrid estate agency and raise returns for shareholders over the next three years.

Nigel Lewis

darvey botha purplebricks

Purplebricks has granted its two most senior figures ‘golden handcuff’ deals totalling nearly a million shares in the hybrid estate agency.

CEO Vic Darvey has been granted 735,437 ‘option’ shares while CFO Any Botha has been awarded 307,500.

Both ‘awards’ and can be cashed in after three years subject to continued employment and performance based on the company’s relative total shareholder return and EBITDA.

The generous scheme, which is intended to incentivise the pair to raise the company’s share dividend payments and share price, are much needed.

Despite the housing boom and a recent upbeat set of results, the company’s share price has been tanking in recent weeks.

In April it peaked at £1.10p but has since slumped to 67p, its lowest price since November 2020.

Market share

Investor chat sites reveal the reason – despite promises to capture a large share of the UK housing market, its slice has remained stubbornly at around 5% for some time now.

The current share price values Darvey’s new options at £492,700 but if he and Botha can raise the share price to even its January 2019 value of £1.89 then this would jump to £1.39 million

The Purplebricks share price has been on an extreme rollercoaster ride since the company launched on the AIM stock exchange in December 2015, rising from around £1 a share to the heady heights of £5 a share in July 2017.

It’s been downhill since then and the company’s market capitalisation is now lower than its launch value of £240 million.

July 20, 2021

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