Mid-cap housebuilder Vistry Group PLC (LSE:VTY) is facing a partial shareholder revolt over its new executive pay policy, with nearly 45% of votes opposing both the policy and amendments to long-term incentives for executives during a meeting on Wednesday.
Shareholder advisory firms ISS and Glass Lewis had earlier advised investors to vote against the remuneration policy.
Under the new policy, chief executive Greg Fitzgerald's salary will rise to £800,000, his annual bonus will be doubled, and the option for long-term incentives will be greatly enhanced.
This adjustment will elevate his maximum pay package from £3.4 million to £5.6 million.
“Ahead of the general meeting, the board and the remuneration committee consulted extensively with shareholders in relation to the proposed revised directors’ remuneration policy, which was designed following the significant enlargement of the business and to incentivise the creation of shareholder value over the long-term,” read a statement from the group.
“The board is grateful to shareholders for their engagement and acknowledges that through the engagement process shareholders expressed different perspectives.”
Vistry also attracted backlash earlier this year for signing off on excessive pay packages for the top brass in the 2022 financial year.
This backlash follows a previous episode two months ago when Vistry confronted shareholder disapproval regarding the company's remuneration report for the past year.
Vistry shares bounced 2.2% higher to 771p on Wednesday.
Shares in housebuilders have been on the front foot lately, after the government said it will scrap UK environmental rules that developers say have prevented tens of thousands of homes from being built in recent years.