Housebuilder Vistry defends decision to hike boss's pay despite revolt

22 February 2024 , 09:30

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Housebuilder Vistry has defended its decision to increase the pay package of chief executive officer Greg Fitzgerald (Image: PA Wire/PA Images)

Vistry, a housebuilding company, has defended its decision to increase the pay of its boss despite opposition from shareholders.

Vistry acknowledged people's concerns but said it was standing by its policy. The firm faced criticism in August when new pay proposals were narrowly approved by shareholders.

Almost half of the votes cast were against the policy, which more than doubles the annual bonus that the company's chief executive can receive and adds 50% to potential long-term incentives. This means that the maximum pay package for boss Greg Fitzgerald could increase from £3.4 million to £5.4 million, provided he meets all his targets.

Mr Fitzgerald was paid £2.5 million in 2022. In an update to shareholders on Wednesday, Vistry said the remuneration committee, which sets pay levels, "understands that the reasons for the number of votes cast against was primarily concerned with the step up in maximum opportunity for the CEO (chief executive officer) which was in excess of usual levels within the FTSE 250".

The committee "acknowledges these concerns", but maintains that the new policy aligns with a "highly performance oriented" framework, with pay levels that incentivise bosses to create value for shareholders. Shareholder adviser agencies ISS and Glass Lewis both suggested that investors vote against the pay report at the company's annual general meeting in May.

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Vistry, which specialises in affordable homes, said that higher interest rates and inflation had reduced demand in the property market throughout 2023. However, they remain hopeful for better conditions this year. They sold roughly 5% fewer homes last year compared to 2022.

Lawrence Matheson