6th Nov 2019 14:29
(Alliance News) - A considerable number of Redrow PLC shareholders voted against the FTSE 250 housebuilder's resolution to reappoint Chair John Tutte and approve the company's remuneration report, according to the company's annual general meeting results released Wednesday.
Resolution three, which proposed the reappointment of Tutte, received opposition from 32% of shareholders, while resolution 11 to approve the remuneration report was voted against by 30% of shareholders.
In November 2018, Redrow announced the appointment of Chief Executive Tutte as executive chair, following the departure of Non-Executive Chair and Founder Steve Morgan.
Concerning resolution three, Redrow admitted that it was "not considered best practice" to appoint a chief executive as executive chair, however it said that circumstances brought about the need for continuity, and that Tutte's appointment was in the company's best interest.
In addition, Redrow also said that the 2020 long term incentive plan award, that has targets lower than that of the 2019 LTIP award, and the LTIP payment made to Morgan were key reasons for shareholder opposition to resolution 11.
For the 2020 LTIP, the relevant targets set a stretch earnings per share target for the year ending June 2022 that is 25% above that achieved in the previous financial year.
In addition, the return on capital employed stretch target was set at 25%, compared to 28% for the prior year, which Redrow's board considered exceptional and not sustainable.
Concerning Morgan's award in September, Redrow said it was pro-rated to reflect his length of service until his leaving at the end of March rather than the short period of time he was an executive before becoming a non-executive in October 2017.
Redrow said that it would review future LTIP targets, measures and rules as part of its forthcoming review of its remuneration policy that will be subject to shareholder approval in 2020.
Shares in Redrow - which is headquartered in Ewloe, Flintshire - were down 1.3% at 603.00 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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