Housebuilder wins narrow approval for package that will see CEO Greg Fitzgerald pocket up to 拢5.6m per year
Vistry shareholders have come close to rejecting the firm鈥檚 executive pay proposals for a second time in three months.
At a specially-convened general meeting yesterday, the housebuilder鈥檚 shareholders narrowly approved a policy that will see chief executive Greg Fitzgerald鈥檚 overall pay package increase by up to 拢2.2m per year.
The firm said 45.2% of shareholders who took part rebelled against the company鈥檚 new remuneration policy, drawn up in the wake of Vistry鈥檚 拢1.1bn takeover of partnerships housebuilder Countryside last year, with just 54.8% in favour.
A separate vote to approve a Long-Term Incentive Plan scheme at the 拢3bn turnover company was passed by just 55.3% to 44.7%. According to reports, proxy voting investment advisers ISS and Glass Lewis had both advised shareholders to vote against the proposed pay deals.
The remuneration package, set out in a letter to shareholders at the start of August, will see Fitzgerald鈥檚 basic salary rise by 5.9%, from 拢755,215 to 拢800,000, while his maximum annual bonus will increase to 300% of salary instead of 150%. The separate 鈥榣ong-term incentive plan鈥� bonus will increase from 200% to 300% from next year.
In total Fitzgerald鈥檚 total package limit increases from 拢3.4m to 拢5.6m a year. Justifying the proposals at the time, Paul Whetsell, chair of Vistry鈥檚 remuneration committee, said Vistry is a 鈥渟ignificantly larger and more complex business鈥� than it was before its acquisition of Countryside in November 2022, and that Fitzgerald will need to hit 鈥渟tretching鈥� targets to receive the full package.
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In response to the revolt yesterday, Vistry said in a statement it was pleased that all resolutions have been approved by a majority of shareholders, but noted that a 鈥渟ignificant number of shareholders鈥� opposed the approval of the revised policy.
It added: 鈥淭he Company remains committed to ongoing shareholder engagement and will continue to do so to ensure that the Company understands shareholders鈥� views and is able to consider feedback, as well as to provide clarity on the Company鈥檚 approach to remuneration going forward.鈥�
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