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Shareholders at UK builder Bovis approve new boss' pay deal

Published 02/05/2017, 16:35
Updated 02/05/2017, 16:40
© Reuters. FILE PHOTO:  A builder works at a Bovis homes housing development near Bolton
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LONDON (Reuters) - Shareholders at British builder Bovis (L:BVS) overwhelmingly backed a pay deal for the firm's new boss who is charged with turning around the ailing firm which was subject to two failed takeover bids after it issued a profit warning.

Chief Executive Greg Fitzgerald's remuneration package includes a 650,000 pound salary, plus a performance-linked additional portion of his salary over the next few years and a bonus of up to 100 percent in shares.

Fitzgerald's total remuneration at the FTSE 250 company, which is likely to be much less than many of his peers, was backed by over 97 percent of shareholder votes at an annual general meeting on Tuesday, the firm said.

Executive pay has become an increasingly hot topic in Britain over recent years with many Britons angry at excessive payouts but investors have had little public success in cutting remuneration deals.

Last week, however, WPP (L:WPP), the world's largest advertising agency, said it will reduce the amount it pays its boss Martin Sorrell to no more than 19 million pounds after an investor backlash sparked by previous record payouts.

© Reuters. FILE PHOTO:  A builder works at a Bovis homes housing development near Bolton

Earlier Bovis said it would take a 2.8 million-pound hit due to a review conducted in February after it failed to build enough homes under Fitzgerald's predecessor and from failed takeover talks with rivals Redrow (L:RDW) and Galliford Try (L:GFRD).

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