Berkeley Group executive chairman Tony Pidgley has survived a predicted shareholder revolt to be re-elected following the housebuilder’s AGM yesterday.
Angry shareholders were expected to oppose Mr Pidgley’s re-election as an executive director but 95.8 per cent of the votes cast were in favour.
According to reports in The Times yesterday, corporate governance body PIRC said that equity awards on offer at the house builder were “highly excessive”.
It also recommended that shareholders oppose the re-election of Tony Pidgley, the former chief executive, who was elevated in June to executive chairman.
Guidelines on boardroom best practice dictate that a former chief executive should not take the chairman’s job, unless the move can be adequately justified to investors.
“The company has not provided sufficient justification or explained in great detail any safeguards that it has put in place,” the lobby group said.
An interim statement yesterday revealed Berkeley’s home bookings in the first four months of its fiscal year were more than £600 million as the housing crash showed signs of easing.
The company had net cash in excess of £300 million and Berkeley said it has started buying sites with the cash, including Johnson House in London’s Belgravia district.