Following a shareholder revolt, Countrywide has scrapped a pay plan that could have handed top bosses up to £20 million.
The group, which operates under 50 different brand names, asked investors earlier this month for an emergency £140 million in funding to save it collapsing.
The group previously proposed to change its existing long-term incentive plan and replace it with an “Absolute Growth Plan” (AGP), in which the chairman, Peter Long, could have received shares worth £20 million.
“No compelling explanation has been provided as to why the proposed arrangement is essential to effectively implementing the group’s strategy and turnaround plan,” said the Institutional Shareholder Services, an influential investor advisory service.
The Institutional Shareholder Services said investors should not allow the new policy, labelling the scheme “excessive” and “unnecessarily convoluted”.
Countrywide said: “The consultation meetings on remuneration with the major shareholders have been both constructive and supportive.”
“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.”
Countrywide boss is also the chair of the Royal Mail (LON: RMG). In July, over 70 percent of investors at the Royal Mail investors rebelled against the company’s remuneration report, which was considered one of the biggest pay revolts in UK corporate history.
Countrywide has lost over 80 percent of its market value over the past year.
Shares in the group (LON: CWD) are currently trading up 0.68 percent at 14.70 (0933GMT).
