Housebuilder’s bosses surrender controversial cash payments in favour of share payouts
Directors at housebuilder Bovis Homes have waived their right to a cash bonus in 2009.
The move follows controversial payments at Persimmon and Taylor Wimpey, who paid their chief executives bonuses of £406,000 and £788,000, respectively.
The move sparked outcry among MPs last week, who questioned the payments in the light of both companies receiving millions of pounds in Kickstart subsidies.
Bovis Homes, which turned over £282m and sold 1,803 homes last year, said it would instead pay its directors in the form of shares.
Chief executive David Ritchie took home a total of £401,000 last year but received 95,057 shares under the bonus plan.
It said: “As a result of trading conditions within the UK housing market and the group’s focus during 2009 on cash flow generation the remuneration committee considered it inappropriate to continue the existing cash bonus scheme during 2009 and, following shareholder approval, entitlement to be considered for cash bonus in 2009 was forfeited by the executive directors and replaced by awards in a bonus replacement share plan.”