News
Countrywide share price drops 10% as £140m rescue bid approved
Estate agent Countrywide has had an emergency £140m rescue plan to shore up its £211m debt burden approved by shareholders.
However, despite the rescue plan receiving the backing of its largest shareholder Oaktree Capital, shares in Countrywide closed down 10% at 13.40p.
The rescue bid received a 98% approval from shareholders at the general meeting held this morning.
Last week, Countrywide abandoned a pay plan that proposed potential executive rewards of more than £20m after the scheme angered investors.
This scheme would have given executives, including chairman Peter Long, share awards worth up to 18 times base salary, compared to two times under the existing scheme.
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The Institutional Shareholder Services (ISS), an adviser on voting decisions, said the new pay scheme was “excessive” and “unduly complex”, and warned that the “calculation of awards is not specified”, encouraging investors to oppose the new remuneration policy.
The firm’s share price has collapsed by around 70% over the last six months.