Vistry to consult again on bonus plans after shareholder revolt

Housebuilder Vistry has indicated it may reconsider its current bonus policy following a revolt by shareholders.

At its annual meeting yesterday, almost half of shareholders voted against its remuneration plans for long-term bonus payments.

Vistry, which owns Bovis Homes, is led by chief executive Greg Fitzgerald, who was paid nearly £2.5m last year, more than half a million of which came as a bonus. 

Almost 53% of shareholders voted to approve the directors’ remuneration report, with 47% of shareholders voting against them.

“We acknowledge that the advisory vote on the directors’ remuneration report was passed with 52.92%,” the Vistry board said in a statement.

“As such, we remain committed to shareholder engagement and will consult with our shareholders over the course of the next few months so that we can fully understand their concerns and decide on appropriate next steps.”

The company expects to make in excess of £450m this financial year. 

Building’s sister title Housing Today understands that the revolt concerns the board’s use of discrection in how long-term bonus payments will be distributed.

The board retrospectively eased criteria for staff bonuses to reflect the impact on market conditions of the covid-19 pandemic. But according to its annual report it retained discretion on how they were distributed.

Yesterday’s shareholder revolt follows the rejection of a separate bonus scheme proposed by American shareholders which would have linked bonus payments to the company shareprice, giving senior executive the potential to earn tens of millions in bonus payments.