Shareholders in Purplebricks have given overwhelming backing to the company’s remuneration policy - including substantial bonuses for senior executives which had been controversial when first announced.
Earlier this year Purplebricks’ annual report revealed that a short term bonus scheme to provide incentives for executive directors to meet financial and strategic objectives saw more than a five fold increase in payments.
In the year to the end of April 2020 the payment was £100,000 - but in the year to the end of April 2021 the figure was £530,000. In addition, during the year to the end of April 2021 pension contributions of £17,000 were paid to executive directors; that’s 70 per cent more than in the year to April 2020.
Looking at the current financial year, the Purplebricks annual report says: “Considering strong performance in the round, the group’s financial resilience and the importance for the group of their personal leadership in the year, we considered the outcomes of £285,000 for [group chief executive] Vic Darvey and £245,000 for [group chief financial officer] Andy Botha as appropriate.”
And in June 2021 it was revealed that almost a million shares in Purplebricks had been awarded to the two top execs. Darvey received 735,437 option shares and Botha got 307,500. These can be cashed in after three years subject to the pair still being at the agency and meeting performance thresholds.
At the time the figures raised some eyebrows in the industry but Purplebricks shareholders, at the company’s AGM held yesterday, were unperturbed.
They supported the Remuneration Committee report with 99.9 per cent in favour and only 0.1 per cent against.
Indeed, all 11 items on the agenda won 99.9 per cent backing.
As Estate Agent Today reported exclusively on Friday of last week, Purplebricks’ latest TV advertisement claims the agency is the UK’s number one estate agency brand by sales.