Bellway directors 'should repay controversial bonuses'

Bellway’s directors should pay back their controversial £600,000 bonuses says one of the house builder's more vocal institutional shareholders.

Bellway’s top team snaffled up bonuses worth 55% of their salaries last year but only after tearing up the existing rules covering the performance needed to trigger their award and awarding them anyway.

That sleight of hand was seen as a fudge and at last Friday’s annual meeting of shareholders, Bellway’s rule-change covering the awards that had not previously been subject to public examination, got a serious thumbs down when 44m Bellway shareholders voted no.

The figure represents a majority (59%) of Bellway shareholders.

Co-operative Asset Management, which holds 2.7% of Bellway’s shares, was one of those showing disapproval.

Abigail Herron, its corporate government analyst, told the Financial Times over the weekend: “Bellway’s shareholders have indicated that it is not acceptable to scrap performance targets in difficult times and award bonuses in any event.

“The directors should listen to their members and repay these bonuses.”