You are here: Home - News -

Countrywide drops controversial executive pay scheme after investor anger

by:
  • 20/08/2018
  • 0
Countrywide drops controversial executive pay scheme after investor anger
Embattled Countrywide has abandoned a pay plan that proposed potential executive rewards of more than £20m after the scheme angered investors.

 

The estate agent wanted to usher in new incentives alongside a £140m rescue plan to shore up the group’s debts, which investors will vote on next week.

Under the shelved scheme, share awards would have depended upon a rise in the company’s share price, which has fallen by around 70% in the last six months.

However, the remuneration for executives, including chairman Peter Long, had been labelled “excessive” by one influential investment group.

It comes as Countrywide looks to the market to raise £140m though a discounted share sale in an effort to ease its £211m debt burden.

The group told the stock market this morning it was pleased with the support the rescue plan had received from shareholders.

But added that, following investor feedback, it would axe proposals for a new pay scheme.

 

‘Constructive and supportive’

In a statement, Countrywide said: “The consultation meetings on remuneration with the major shareholders have been both constructive and supportive.

“There has been agreement that the proposals focus on rebuilding shareholder value as well as discussion as to whether that is sufficient to merit moving from the existing remuneration policy.

“Taking these factors into consideration, the board has decided that the directors’ remuneration policy should not be amended and that the group’s existing remuneration policy and long-term incentive arrangements as approved by shareholders at the company’s annual general meeting held in 2017 will remain in place.”

The vote on the £140m cash call is to take place on August 28.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Clients are amazed to complete when other brokers gave up – Star Letter 17/08/2018

Mortgage Solutions and its sister title Specialist Lending Solutions select the most thoughtful or thought-provoking comment for Star Letter.

Close