BusinessCompany NewsABI homes in on Berkeley

ABI homes in on Berkeley

One of the country's largest shareholder representatives has issued its most severe warning over an incentive scheme at house building group Berkeley, which could see the finance director and managing director acquire large chunks of the company.

The Association of British Insurers issued its rare ‘red-top’ corporate governance warning to the company’s shareholders over the restructuring scheme at Berkeley. The group is planning to scale back on its traditional house building business and concentrate on the regeneration of brownfield areas in inner cities. As part of the plan, Berkeley’s executive directors would take control of 15% of the restructured business.

Group FD Rob Perrins will see his stake in the company grow from 0.023% to 3%, while MD Tony Pidgley will see his holding rise from 1.66% to 8%.

‘This is out of the ordinary,’ said a spokeswoman for the ABI. ‘Incentives like this should be strongly linked to performance, but in this case that link does not appear so strong. We are concerned that it oversteps the mark.’

The group also raised concerns that the company’s management team, which currently owns 2%, will also be allowed to vote on the proposals. The ABI is advising shareholders to vote against the incentive scheme at an extraordinary meeting to be held on 17 September.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor