Countrywide this morning dropped plans to hand out some £20m to its top three executives – executive chairman Peter Long, managing director Paul Creffield, and chief financial officer Himanshu Raja.
In a statement to the stock exchange it said that there had been discussion as to whether there was “merit” in moving from the existing remuneration plan, and that it had been decided that it should not be amended.
The statement also says that there has been support from both existing and new shareholders for the £140m emergency fund raise, due to be rubber-stamped tomorrow week.
This is the full text of the statement:
“On 2 August 2018, the Company announced a new capital refinancing plan and published a combined prospectus and circular containing a notice for a general meeting of the Company to be held on 28 August 2018 (the “General Meeting“).
The notice of the General Meeting includes, at Resolution 1, a proposal to adopt a new remuneration policy (the “New Policy“) and, at Resolution 2, a proposal to establish the Countrywide Absolute Growth Plan (the “AGP“) in line with the New Policy.
The Company stated that it would be consulting in advance of the General Meeting with major shareholders and representative bodies on the proposed changes and the Chair of the Remuneration Committee has now concluded these meetings.
The Board is pleased with the support it has received from both existing and new shareholders in relation to the raising of £140 million of additional equity. Subject to the approval of the issue on 28 August 2018, this will provide the Group with greater long-term certainty, flexibility and balance sheet strength, and will allow management to fully focus on the three-year turnaround plan and return to growth strategy.
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 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.
As a result, the Company announces that the resolutions seeking shareholders` approval in respect of the New Policy and of the AGP are being withdrawn and will not be voted upon at the General Meeting.”
When share price is just 14p and cannot really drop much further you need to listen to share holders by the looks.
What a sorry state of affairs CW is.
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Why?? When is gov’t. Going to crack down on this corrupt city. Stockbrokers gambling on pensioners money and fat cats awarding thrmsrlves millions for bagging more debt. This can’t go on can it? #purplebricks #yopa #onTheMarket #ponzi
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Would be interested to know what their plan would be to turn around the business.
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Like turning around an oil tanker
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This business needs to rationalise and quickly. Make tough decisions to remove duplication in towns: transfer stock, keep good staff, cut overheads. Consider consolidating of brands. Create a single message and be positive. Reduce area management layer. Trust staff. Profit share in branches.
Not rocket science.
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Absolutely spot on
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