Purplebricks has gifted two of its most senior players share options worth over £3.44 million, based on its current share price.
These are CEO Vic Darvey who gets 2.5 million share options and CFO Andy Botha who gets 1.7 million share options.
Both are able to sell the shares in three years’ time and, if the company’s share price returns to at least its pre-Covid share price of £1.60p, will considerably enrich both men.
The company’s latest results show that Vic Darvey was paid a base salary of £356,000 while Botha, who joined four months ago, is likely to earn a similar salary to his predecessor, whose basic was £250,000.
The new share options for Darvey and Botha are designed to persuade the pair to raise the company’s game and increase revenue and profits after a difficult few years for the hybrid agency.
Purplebricks latest annual report revealed the mountain that the pair must climb, even if the booming housing market at the moment has helped raise its share price.
The Covid months were unkind to Purplebricks, which saw its revenue, revenue growth, number of instructions and gross margin reduce. Also, it operating losses increased from £1.5 to £9.4 million, although this was largely down to the huge ongoing costs of exiting its foreign ventures.
Darvey recently revealed that he hopes to achieve a turnaround in its performance by altering its business model.
This includes plans to split its fees between listing and completion, lowering the cost of instruction but raising the overall fee.