Savills has seen a major revolt by shareholders in a backlash over reward packages awarded to bosses during the pandemic.

The company paid chief executive Mark Ridley a £350,000 bonus despite failing to hit the minimum profit target required to trigger an award last year.

The agency, which made pre-tax profits of £84.7m last year against the minimum requirement of £120m, also paid Ridley £500,000 for meeting 90% of his separate “key objectives” during the pandemic.

Almost a fifth – 19.6% – of investors voted against the company’s remuneration report, while a further 6.1% abstained.

Savills is currently the  subject of a ‘red top’ warning from the Investment Association.

Savills said: “The board acknowledges the level of votes cast against Resolution 2, the advisory vote on the implementation of the company’s 2020 Remuneration Policy, itself approved by 90% of shareholders at last year’s AGM.

“In advance of the AGM the Board engaged with both shareholders and proxy advisors in respect of concerns raised on aspects of the Directors’ Remuneration Report.  The Board understands that shareholders’ primary concern was its decision to take into account a wider number of operational and strategic performance metrics than the profit targets set prior to the pandemic.

“The board applied discretion to specifically award 21% of the maximum potential profit related bonus element to the Executive Directors to recognise the significant operational and strategic progress in the year, reflected by the impressive market share gains. This decision resulted in total remuneration of the Executive Directors being reduced by 45% year-on-year. Some shareholders also felt that Executive Directors pension provision may not be aligned with the all-employee rate although this is fully aligned with the rates available to colleagues with an equivalent level of service.

“The board is satisfied that its recommendation was made in the best interests of all stakeholders. In light of the voting outcome, and in any event as part of the planned introduction of the new Chair of the Remuneration Committee to our leading shareholders, it will engage with our leading shareholders over the coming months.

“In accordance with the UK Corporate Governance Code, the Company will publish an update on that engagement within six months of the 2021 AGM.”