Kier rocked by salary revolt

TROUBLED housebuilder Kier has suffered one of the City’s biggest pay revolts of the year.

Almost 55pc of shareholders voted against last year’s pay packets and expenses arrangements, which saw it pay for ousted chief executive Haydn Mursell’s broadband subscription.

It is a further embarrassment for the contractor that ousted Mr Mursell in January after a botched £264m rights issue taken up by 38pc of shareholders.

It posted losses of £245m last year, fuelled by problematic contracts including redeveloping Broadmoor Hospital in Berkshire, as well as high costs and low margins battering the outsourcing sector. Chief operating officer Claudio Veritiero yesterday left the business amid deepening cost cuts. His role will not be replaced.

Kier, which is working on projects including nuclear power station Hinkley Point C, said in a statement that it would “reflect carefully” on points raised by its shareholders and consult them further about their concerns.

Shareholder advisory groups ISS and Glass Lewis had both recommended voting against Kier’s pay policy. ISS raised concerns about share-based bonuses for Mr Veritiero and new chief executive Andrew Davies, who took over in April. They earned £493,000 and £140,000 respectively last year.

Glass Lewis drew attention to the £475,000 salary for incoming finance chief Simon Kesterton, which is 18pc higher than his predecessor’s. His potential bonus awards are also higher.