However, the board said that the vote was merely ‘advisory’ and will pay themselves all their bonuses anyway. The bonuses are worth up to 125% of salary if they make just 5%-8% growth in profits for the 2017 to 2019 period.
More than 58% of votes cast rejected Crest Nicholson’s remuneration report after a cut in the targets that directors have to achieve for generous bonuses to kick in.
Standard Life Investments, Crest Nicholson’s second largest shareholder, said: “We were disappointed that the company chose to substantially reduce the profit range at which incentives for management were paid, without consulting shareholders. As a result we voted against the remuneration report.”
In a statement after the vote, the board said that it stood by its remuneration policies, as it was reasonable to expect a slowdown in growth "taking into account the uncertain economic backdrop". It said that it would seek to explain its reasoning to shareholders more successfully next year.
It said: “Every year, we have a regular dialogue with leading shareholders on a range of matters including remuneration. During the course of this year, we will continue this engagement with shareholders and… …seek to better communicate underlying rationale to shareholders with earlier engagement.”