A shareholder revolt is looming for Purplebricks after a leading City advisory service revealed it was unhappy at the generous bonus scheme rewarded to its directors.
London-based advisory service Institutional Investor Services (ISS) has urged stockholders to vote against the financial section of Purplebricks’ 2019 Annual Report, which was due to be rubber stamped on Thursday this week at the offices of its City PR firm Buchanan Communications on Cheapside.
ISS says it is unhappy that the company’s performance share plans for its senior directors are not tied closely enough to “performance hurdles” and vest too soon.
Purplebricks released a statement to the media over the weekend rebutting the claims by ISS, saying that the hybrid agency needed to “attract and retain” the best-quality individuals and that its executives are “not especially well paid”.
Purplebricks’ investors have been quiet so far about their voting intentions on Thursday, including major players such as Axel Springer, Woodford Investments, Meridian Global Investors and Paul Pindar, who helped finance the firm during its early start-up phase.
How the City reacts to the announcement to the news of a potential investor revolt will be revealed during today’s share trading.
The Purplebricks share price has been recovering in recent weeks after crashing to an all-time low of 90p a share in May. On Friday it closed at £1.11 a share but still a fifth of its peak 2017 price of £5.13.