THE BOARD of housebuilding company Vistry Group is gearing up for confrontation at its AGM on Thursday, as activist investors prepare to challenge the firm over plans for enhanced executive bonuses.

A number of proxy advisory firms, including ISS and Glass Lewis are advising shareholders to vote down Vistry's remuneration report at Thursday's AGM.

The AGM votes on executive pay will be advisory rather than binding.

Another group of Vistry's shareholders, led by activist Inclusive Capital, had in March proposed plans to implement a bonus scheme tied to share price, which could see chief executive Greg Fitzgerald's bonus reach £60 million if Vistry's share price hits £18 within three years, around 150 per cent above its current level. This was rejected by Vistry's renumeration committee, and the board responded by proposing a capped bonus scheme instead.

The FTSE 250 business became one of the UK's largest housebuilders after acquiring Countryside for £1.27bn last November.

The business posted a pre-tax profit of £248m and turnover of £2.73bn in the year to 31 December 2022.

A spokesperson for Vistry declined to comment.

(c) 2023 City A.M., source Newspaper