Foxtons has agreed to review its bonuses policy following a recent backlash and a 50% reduction in payouts to senior executives.

Investors expressed their anger at the firm’s  annual shareholder meeting in April with almost 40% voting against an almost £1m for its chief executive Nic Budden, including £389,000 in cash and shares worth £569,000.

Almost a fifth – 17% – voted against his re-election to the board and a third – 33% – voted against non-executive Alan Giles, who chairs the remuneration committee.

Foxtons said: “The Committee has consulted with its larger shareholders to understand their views. The performance of the business in 2020 met the conditions set out in the remuneration framework for the payment of bonuses but, considering the circumstances, the committee exercised its discretion by reducing this award by 50%.

“Despite the discretion, it was clear that a significant proportion of shareholders did not agree with the decision to pay bonuses to executive directors under the bonus banking plan, because the Company had benefited from Government support.

“The Policy, which itself was approved by 79% of voting shareholders at the 2020 AGM, was designed to better align executives reward with shareholders’ interests. The Remuneration Committee acknowledges shareholders’ concerns around the implementation of the policy in 2020, however believes the decisions were appropriate and in the long term interests of stakeholders.

“While the board believes the policy approved at the 2020 AGM is the best structure to drive long-term shareholder value and stakeholder interests in a highly cyclical business such as Foxtons, we will review the Policy during the year ahead, in consultation with shareholders, to ensure that it continues to be in the best interests of the Company and its shareholders in the longer term.”

Foxtons received £6.9m in government support during the pandemic, including business rates relief and £4.4m in furlough for staff. But there are no signs at this stage that the government will be repaid, despite the recent property market boom.

The latest financial figures released by Foxtons shows that the company delivered its best first half results since 2016 by capitalising on improved trading conditions, particularly in sales, contributing to rapid growth in profitability.

The acquisition of Douglas & Gordon (D&G), the largest in the Group’s history, was also a significant strategic development. 

Foxtons recently appointed a new chairman Nigel Rich to oversee changes.

Confirmed: Foxtons announces the appointment of Nigel Rich as chairman