Investors warned on £600,000 Bellway bonuses

Shareholders at Bellway may revolt at the hefty bonuses paid to its directors in 2008, according to an investors' watchdog.

The Association of British Insurers, which represents large investors, said that shareholders in the housebuilder could oppose the payouts, which amount to more than £600,000.

Bellway's senior directors paid themselves £632,500 in bonuses for 2008, with chief executive John Watson pocketing £275,000, a 55% addition to his salary of £500,000. The company saw pre-tax profits fall 30% this year, and has made around 400 redundancies in an attempt to deal with the severe economic conditions.

Peter Montagnon, ABI's head of investment affairs, said that bonuses should only be handed out when performance targets are met.

He said: "What [Bellway] have done is torn up the targets and paid the bonuses anyway. Quite a number of shareholders are likely to vote against this.

"It is important at the stage we have got to in the economic downturn that companies do not go on paying large salaries and bonuses regardless."

The ABI has issued a "red-top alert" to Bellway's shareholders ahead of its AGM later this month, warning them of serious concerns with the company's behaviour.

Bellway defended the bonuses in its annual report, saying that its management had performed well in difficult conditions in comparison with rival housebuilders.

Investors warned on £600,000 Bellway bonuses

Shareholders at Bellway may revolt at the hefty bonuses paid to its directors in 2008, according to an investors' watchdog.

The Association of British Insurers, which represents large investors, said that shareholders in the housebuilder could oppose the payouts, which amount to more than £600,000.

Bellway's senior directors paid themselves £632,500 in bonuses for 2008, with chief executive John Watson pocketing £275,000, a 55% addition to his salary of £500,000. The company saw pre-tax profits fall 30% this year, and has made around 400 redundancies in an attempt to deal with the severe economic conditions.

Peter Montagnon, ABI's head of investment affairs, said that bonuses should only be handed out when performance targets are met.

He said: "What [Bellway] have done is torn up the targets and paid the bonuses anyway. Quite a number of shareholders are likely to vote against this.

"It is important at the stage we have got to in the economic downturn that companies do not go on paying large salaries and bonuses regardless."

The ABI has issued a "red-top alert" to Bellway's shareholders ahead of its AGM later this month, warning them of serious concerns with the company's behaviour.

Bellway defended the bonuses in its annual report, saying that its management had performed well in difficult conditions in comparison with rival housebuilders.

Investors warned on £600,000 Bellway bonuses

Shareholders at Bellway may revolt at the hefty bonuses paid to its directors in 2008, according to an investors' watchdog.

The Association of British Insurers, which represents large investors, said that shareholders in the housebuilder could oppose the payouts, which amount to more than £600,000.

Bellway's senior directors paid themselves £632,500 in bonuses for 2008, with chief executive John Watson pocketing £275,000, a 55% addition to his salary of £500,000. The company saw pre-tax profits fall 30% this year, and has made around 400 redundancies in an attempt to deal with the severe economic conditions.

Peter Montagnon, ABI's head of investment affairs, said that bonuses should only be handed out when performance targets are met.

He said: "What [Bellway] have done is torn up the targets and paid the bonuses anyway. Quite a number of shareholders are likely to vote against this.

"It is important at the stage we have got to in the economic downturn that companies do not go on paying large salaries and bonuses regardless."

The ABI has issued a "red-top alert" to Bellway's shareholders ahead of its AGM later this month, warning them of serious concerns with the company's behaviour.

Bellway defended the bonuses in its annual report, saying that its management had performed well in difficult conditions in comparison with rival housebuilders.

This news comes after Bovis Homes has signed a new debt deal with its banks to replace its existing £220m facility. The company said it includes a covenant package that is more appropriate for the current trading conditions. More details will be provided at its trading updte later this month.