Investors voice anger over pay packages but Galliford Try housing deal sails through

Bovis Homes

Bovis shareholders yesterday narrowly approved the housebuilder鈥檚 plans to pay its top executives huge bonuses, having backed the firm鈥檚 拢1.1bn bid to buy Galliford Try鈥檚 Linden Homes and Partnerships businesses.

At Bovis鈥� annual general meeting a controversial resolution to approve directors鈥� pay was passed by 65% of the 113 million votes cast, while investors rubber-stamped the Galliford Try deal with 96% of the votes.

Bovis had faced by 150% and long term incentive plan (LTIP) payouts by 200% following completion of the acquisition.

Last week investment adviser ISS said 鈥渟ignificant issues鈥� had been identified with the proposed remuneration arrangements for the enlarged business post-takeover, including the fact maximum awards under the LTIP had increased by up to two times salary, and that 鈥渙verarching discretion鈥� would be granted to the business 鈥渨hich may potentially be used to increase award level excessively鈥�.

Bovis has said the proposed pay deals are fair given the 鈥渢ransformational鈥� nature of the acquisition of Linden Homes and its Partnerships operation.

But after the vote Bovis said it recognised that a 鈥渟ignificant minority鈥� opposed LTIP as well as its remuneration policy.

The housebuilder said it had a 鈥済ood understanding of the concerns of some of [its] shareholders鈥� and it would 鈥渃ontinue to engage with those shareholders and will provide an update on the views received on these issues and actions taken in response no later than in six months鈥� time鈥�.

Last week with Bovis, which the pair said would create a top-five housebuilder.