HOUSEBUILDER Bellway lost a shareholder vote yesterday over the company’s controversial payment of more than £630,000 in executive bonuses.
Shareholders voted down the company’s remuneration report amid anger that Bellway had ditched previous performance targets to pay the bonuses.
Bellway told shareholders that it had been wrong not to consult investors earlier, adding that it would now review future policy.
The Association of British Insurers (ABI), which represents major investors, had earlier issued its strongest “red-top'' warning ahead of the annual meeting.
The group’s top three directors were paid £632,500 in bonuses – 55% of their combined annual salaries – in the year to July 31.
Bellway’s annual report said a “rapidly deteriorating” housing market “necessitated a review” of its bonus structure.
Pre-tax profits plunged 30% to £165.7m over the period.
