Foxtons will review its remuneration policy after nearly 40 per cent of shareholders voted against executive pay packages.
Foxtons faced criticism from investors and shareholders groups over its decision to award CEO Nic Budden almost £1m in bonuses for the year.
Shareholders’ concern centred on the group paying out bonuses to executives despite a sharp a fall in its share price, from 94p before the pandemic to about 66p now, and after it took some £7m in government Covid support.
In an update today, the estate agent revealed that a significant number of shareholder votes had been cast against the company’s annual pay report.
In response, Foxtons promised to review future pay.
In a statement today Foxtons said: “It is clear that a significant proportion of shareholders did not agree with the decision to pay bonuses to executives under the Bonus Banking Plan, on the basis that the company had benefited from government support.
“The new 2020 remuneration policy was designed to better align executives reward with shareholders’ interests… the Remuneration Committee will review the remuneration policy and its implementation in consultation with shareholders to ensure executive remuneration drives long-term shareholder value and stakeholder interests.”