Countrywide scraps £20m bonus plan for top bosses over investor concerns

● Struggling estate agency group decides against plans as it tries to raise funding

Countrywide, the UK’S largest estate agency group, has abandoned plans that could have seen senior executives share a bonus pool of up to £20 million.

The move follows shareholder disquiet over the proposed payouts at the group, which is currently trying to raise around £140m in funding from investors. The new pay proposals would have seen chairman Peter Long, managing director Paul Creffield and finance chief Himanshu Raja be eligible for millions of pounds’ worth of share awards as part of changes to its remuneration policy.

The plans were to have been voted on at the group’s upcoming annual general meeting but yesterday the firm said it would stick with existing pay structures after it met with top shareholders. “Theconsultationmeetingson remuneration with the major shareholders have been both constructive and supportive,” Countrywide said.

“There has been agreement that the proposals focus on rebuilding shareholder value as well as discussion as to whether that is sufficient to merit moving from the existing remuneration policy.

“Taking these factors into consideration, the board has decided that the directors’ remuneration policy should not be amended and that the group’s existing remuneration policy and long-term incentive arrangements as approved by shareholders at the company’s annual general meeting held in 2017 will remain in place.”

Earlier this year, Countrywide shares plunged more than 60 per cent when the beleaguered estate agent said it was tapping investors for extra cash in the hope of servicing its debts and staying afloat.

Countrywide, which has more than 30 branches across Scotland, yesterday said it was pleased with investor support for the £140m equity raise being sought as part of the rescue plan. The funds will be used to reduce net debt by around 60 per cent.

Earlier this year, directors at housebuilder Persimmon agreed to forego around £50m in bonuses following an outcry over a long-term bonus scheme.

The pay controversy led to the resignation of chairman Nicholas Wrigley and remuneration committee chairman Jonathan Davie late last year.

Last week a report revealed that FTSE 100 chief executive pay packages have soared by 11 per cent in the past year, with median salaries now at just under £4m.

The rise compares with a 2 per cent increase in pay for full-time workers.