Bellway announced it would reevaluate future remuneration policy due to an overwhelming 59 percent vote against the remuneration report, according to RiskMetric’s governance blog.
Bellway is a UK house-building company that builds homes throughout England, Scotland, and Wales. UK company meets allow shareholders an advisory vote to approve the company’s remuneration report for the year under review.
The outcry by shareholders occurred after Bellway did not base its bonus payments of more than GBP 630,000 (U.S. $945,000), or 55 percent of their basic salaries, to its three executive directors on pre-set targets, instead used discretion to make an assessment at year end.
The company suffered market losses from fiscal 2007 to 2008, according to its annual report.
The overall revolt demonstrates that remuneration matters are under intense scrutiny of shareholders in the current downturn. This response by Bellway shareholders could foreshadow what is yet to come for the 2009 voting season.