This article is more than 2 years old

This article is more than 2 years old

Countrywide has scrapped a pay plan that could have handed its top executives more than £20m after a shareholder revolt.

Earlier this month the beleaguered estate agent group, which has nearly 10,700 staff and operates under about 50 brand names including Hamptons International and Bairstow Eves, was forced to ask investors for £140m in emergency funds to save it from collapsing under the weight of its debt.

Shareholders will vote on the cash call next week, as part of what Countrywide is calling its “Absolute Growth Plan” (AGP), which also includes pushing through a new incentive scheme.

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Under the proposed scheme top executives including the chairman, Peter Long, whose role changed to an executive position following the ousting of former chief executive Alison Platt, could have received Countrywide shares worth more than £20m.

Countrywide’s proposals to replace its existing long-term incentive plan with AGP sparked a furious response from shareholders. Institutional Shareholder Services, an influential investor advisory service, said investors should oppose the new policy and labelled the scheme “excessive” and “unnecessarily convoluted”.

“No compelling explanation has been provided as to why the proposed arrangement is essential to effectively implementing the group’s strategy and turnaround plan,” ISS said.

While Countrywide was expected to be able to push through the scheme – its largest shareholder Oaktree Capital was reportedly set to back the proposals – the company has decided to avoid a clash with investors by dropping the pay plans.

“The consultation meetings on remuneration with the major shareholders have been both constructive and supportive,” the company 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.”



The decision to drop the new incentive scheme will save Long, who also chairs Royal Mail, from a second humiliating run-in with investors in as many months.

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In July, more than 70% of Royal Mail investors rebelled against the company’s remuneration report, one of the biggest pay revolts in UK corporate history.

Long, who is also vice-chairman of travel group Tui, saw almost a third of disgruntled Royal Mail investors vote against his re-election as chairman.

Countrywide has lost more than 80% of its market value over the past year as the housing market cooled.