Barratt chair threatened with investor rebellion after shareholders advised to vote against re-election
Housebuilding giant Barratt Developments could suffer a revolt at its annual general meeting tomorrow, after an influential shareholder advisory group recommended investors vote against the re-election of chairman John Allan.
PIRC has said that Allan, who is also chair of Tesco, “cannot effectively represent two corporate cultures…the possibility of having to commit additional time to the role in times of crisis is ever present”.
While the shareholder advisory consultancy recommended investors vote for the re-election of boss David Thomas, it also recommended investors vote against the company’s remuneration report, adding that the chief executive’s pay was “excessive” at 33 times the size of the average employee.
Read more: Profits surge at housebuilder Bellway but Brexit caution lingers
The City will also be keeping a close eye on results being released by the FTSE 100 housebuilder tomorrow, after rival Bellway unveiled rising profits today but warned of threats to consumer confidence in the run-up to Britain leaving the EU.
Much like Bellway, Barratt has been boosted by a combination of low interest rates and the government’s Help-to-Buy scheme in recent years.