Backlash at Bovis bonus boost
BOVIS Homes is bracing for an investor backlash over plans to hand bonuses to bosses of up to 200pc of their salary.
Shareholders will have the chance to vote on the proposal today as they meet to decide on the housebuilder’s £1bn takeover of the residential arm of construction firm Galliford Try. The acquisition will make Bovis Britain’s fourth-largest housebuilder, potentially producing up to 12,000 homes a year.
If the takeover and pay scheme is approved, bosses would be able to earn long-term performance share bonuses of up to 200pc of their salary – up from 150pc previously – as well as cash bonuses of up to 150pc of their salary – up from 100pc.
Bovis has said the pay deal is justified because the combined business will be trickier to run and that it is in line with the wider industry. But shareholder advisory group ISS has flagged ‘significant concerns’ and urged investors to vote against the changes.