Report Suggests Foxtons Downsizing in Chiswick Park
Company responds to shareholder pressure to reduce directors' pay
Chiswick-based estate agent Foxtons may be considering reducing the space in occupies in the Chiswick Park office development according to reports in the industry press.
At the same time they are responding to pressure from shareholders to reduce their top directors’ pay.
An article in Estate Agent Today states that there are unconfirmed reports that the company is looking to off load some of the space at their headquarters.
The move would come after a series of disappointing results which have seen a consistent decline in sales. This led to a significant shareholder unrest at their last Annual General Meeting back in May with a fifth of votes being cast against the remuneration committee report.
The size of the vote against the report meant that the company was listed by the Investment Association trade body as a firm which has been hit by a significant shareholder revolt over ‘fat cat’ pay .
This was recommending that, subject to performance targets being reached, CEO Nick Budden would be paid £1.74 million and CFO Mark Berry would get £779,000 made up of base salary and bonuses. Mr Berry left the company by ‘mutual agreement’ a few months later.
Revenues at the company have continued to decline with a 7% fall for the three months to September.
The company issued a statement saying it recognised that concerns from shareholders had had an impact on support for the previous bonus scheme and they would be relooking at the issue to present a new scheme at the next AGM which they claim will be more transparent.
The head of the Remuneration Committee Sheena Mackay also stepped down on 13 November. Foxtons says that this is due to increased demand on her time from another company she works for. She remains on the Committee and the company board.
Foxtons are also to change auditor with BDO taking over from Deloittes who have audited the company since 2009.
We have asked Foxtons for comment on the reports that they are downsizing their headquarters but have yet to receive a response.
November 16, 2019