Shareholder group not sold on Foxtons exec pay, advising a vote against at the AGM next Wednesday
The shareholder spring set its sights on a new target today, with an influential shareholder advisory group recommending a vote against the remuneration report.
The Institutional Shareholder Services (ISS) has taken issue with chief executive Nic Budden's paypacket, which included a 19 per cent increase in salary and a 20 per cent increase to potential bonus.
"The two increases, taken in conjunction, mean a very significant amplification of the overall package," the report read.
According to the company's annual report for 2015, Budden is due to receive £856,000 in total for the year's efforts. While this represents a 162 per cent hike from the prior year's £327,000, Budden was appointed chief executive of the company in mid-2014, which somewhat affected his paypacket.
Read more: Will more shareholders say no to executive pay?
However, the shareholder advisory group noted that the straightforward pay model, along with the clawback mechanism coming into effect at the company from 2016, were positive aspects in the real estates company's reward package.
At last year's AGM, Foxtons' shareholders voted 92.4 per cent in favour of the remuneration report.
Foxtons has not yet responded to City PM's request to comment.
Read more: Shining a light on pay disparity can be the harbinger of change
Shareholders have not been afraid to flex their muscle so far this AGM season. BP's chief executive Bob Dudley found his $19.6m (£13.8m) paypacket being given the ultimate thumbs down, when shareholders refused to pass the resolution relating to the remuneration report, with 59.29 voting against.
Meanwhile, executives at Man Group, Anglo American and Citigroup were all lucky enough to see shareholders giving the thumbs up to their pay deals, but only by the narrowest of margins.
However, other AGMs have seen remuneration reports being passed with relative ease, including at Barclays, Rolls Royce and GlaxoSmithKline.