Mid-cap housebuilder Vistry posts interims on 11 September and they'd better be good after a shareholder revolt at the AGM saw 45% vote against chief executive Greg Fitzgerald's pay package.
Under the new policy, 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.
Vistry also attracted a backlash earlier this year for signing off on excessive pay packages for the top brass in the 2022 financial year.
On the plus side, shares in the group have held up relatively well compared to rivals over the past twelve months helped by its partnerships/ social building division.
Partnerships is behind Vistry guiding for underlying revenue to jump from £426 million to £930m in next week’s first-half results, said Hargreaves Lansdown.
Investors will also be keeping an eye out for updates to the full-year outlook, added the wealth platform, which had been expecting underlying pre-tax profits to land above £450m.
“The balance sheet’s also a key area of interest. The last update showed Vistry had swung from a £115m net cash position to a £330m net debt position, as it looks to drive growth in its Partnerships business.
“But, as cash resources get stretched, the group’s 6.2% prospective dividend yield could get pulled back as spending priorities change.”