Housebuilder Bovis Homes is facing investor backlash over executive pay proposals as it prepares to approve a £1.1bn takeover of Galliford Try’s residential development arm.
A number of institutional investors are preparing to vote against Bovis Homes’ long-term incentive plan (LTIP) and remuneration policy at a shareholder meeting next week, Sky News reported.
Several shareholders have told the FTSE-250 company’s board that they will oppose the plans that could lead to bumper payouts to chief executive Greg Fitzgerald and other top executives, the broadcaster said, citing sources.
If the proposals are approved, annual bonus and LTIP scheme payouts would rise to 150 per cent and 200 per cent of salary respectively.
Shareholder advisory firm Institutional Shareholder Services (ISS) has reportedly recommended that investors vote against resolutions on the LTIP and remuneration policy, which could increase the base salaries of Fitzgerald and the finance director by more than the wider workforce.
IVIS has issued an “amber-top” notice on the resolutions, while Glass Lewis has recommended that investors back the proposals.
A Bovis spokesperson told Sky News that the proposals reflected the “transformational” Galliford Try acquisition.
The spokesperson said the company has had “clear indications of support, including from a number of major shareholders”.
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