A shareholder advisory group has urged investors in property developer Berkeley Group to vote down its proposed remuneration package, branding it “excessive” and opaque.
ShareSoc, the UK Individual Shareholders Society, said yesterday that it had advised its members to oppose the remuneration report resolution at the company’s agm on 6 September.
The investor group said such a step “will send a good signal of disapproval of this plan and the need for more moderation in the future”.
Objections include chairman Tony Pidgley’s remuneration being “unnecessarily high”, reaching £21 million in 2015/16, and it cited the “excessively generous” 2011 long-term incentive plan (LTIP) as the main driver, with the executive receiving 30 per cent of the total amount.
ShareSoc added that the 2011 LTIP total payouts look set to exceed £400m, with the scheme diluting shareholders by 14 per cent, “even though awards were made towards the bottom of the cycle”.
The organisation also highlighted the firm having both an executive chairman and chief executive, saying this was “unnecessary”.
Cliff Weight of ShareSoc said: “I think the Berkeley remuneration report fails the ShareSoc remuneration guidelines test of clarity and transparency. ShareSoc is opposed to unnecessary increases in directors’ remuneration.”
In June, Berkeley said in its full-year results that “remuneration packages are regularly benchmarked against the industry to ensure they remain competitive”.