US investors push for £60m bonus for Vistry boss

Vistry has declined to comment on reports that US investors in the business have proposed offering chief executive Greg Fitzgerald a bonus of up to £60m, sparking a board row.

Housing Today understands that a number of US investors, thought to include Inclusive Capital Partners and Browning West, proposed instituting an incentive package for Vistry staff, which would have seen Fitzgerald pocket £60m if the firms’ share price hits £18 within three years – around 150% above its current level.

The proposal comes five years after former Persimmon boss Jeff Fairburn was forced to resign following a public outcry over his £75m long term bonus package, which came at the same time as rising concerns over the quality of the builder’s products.

The proposal comes a week after directors at Vistry, which late last year bought partnerships player Countryside, set out plans to grow the firm’s output to 20,000 homes per year, which if achieved would make it the largest housebuilder by volume in the UK.

Vistry’s remuneration committee is understood to have rejected the proposal, first reported in the Sunday Times, however the shareholders have come back with a revised proposal “capping” Fitzgerald’s bonus at £40m, with the matter still under discussion.

A source quoted in the Sunday Times described the pay proposal as “egregious” but said the shareholders were “adamant”.

The reports come after the announcement last week of the resignation of two non-executive directors on Vistry’s remuneration committee, Katherine Innes Ker and Nigel Keen, chair of the remuneration committee.

It also comes after Vistry announced at the same time the appointment of Inclusive Capital Partners’ founder and managing partner, Jeffery Ubben as a non-exec on the board of Vistry. Inclusive holds 5.9% of Vistry’s shares, with Browning West also a major shareholder.

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Housing Today understands that the proposals from the shareholders are still under discussion, and would comprise an incentive package for all staff of the company, not just Fitzgerald. When Vistry put through its merger with Countryside it said that a new remuneration package would be developed in the wake of the combination, with any new package requiring approval by shareholders.

A spokesperson for Vistry declined to comment on the story.

However, last week chair Ralph Findlay, commenting on the board changes, said “I am very pleased to welcome Jeff to the Board. His deep expertise and insights, particularly in impact and sustainability, will be of significant value as we continue to integrate our recent acquisition of Countryside Partnerships at pace.”

He added: “I would like to thank Nigel and Katherine for the strong contribution they have made to the Company since 2016 and 2018, respectively. They have provided support, dedication, and wise counsel through a period of significant growth and transformational change in the business, culminating in the recent acquisition of Countryside Partnerships. They also provided guidance during the disruption to the business as a result of the various lockdowns and ongoing Covid restrictions.”