Shareholders rebel over bonuses

The Bellway board said the firm had performed better than many rivals

Tyneside housebuilder Bellway is to review its policy on director pay after shareholders voted against big bonuses for three top bosses.

The trio at the Newcastle company were paid �632,500 in bonuses - despite poor sales and job cuts - which they cannot be forced to repay.

Some shareholders expressed anger at the company's annual meeting at the Copthorne Hotel in Newcastle on Friday.

The firm later admitted it was "wrong" not to consult shareholders earlier.

The Association of British Insurers (ABI), which represents major investors, had also criticised the big payments.

But after Friday's meeting the company issued a statement which said: "The board has noted shareholders' views on the Report of the Board on directors' remuneration and believes it was wrong in not consulting with major shareholders earlier."

Disastrous year

Chief executive John Watson was awarded a �275,000 bonus on top of his �500,000 salary.

The firm's commercial director Peter Stoker and finance director Alistair Leitch, were both awarded �178,750 on top of their �325,000 salaries.

ABI's head of investment affairs, Peter Montagnon, said: "One of the most important principles of directors' remuneration is that targets should be linked to performance.

"What they have done is torn up the targets and paid the bonuses anyway."

Bellway's shares fell by more than a quarter during a disastrous year for the industry as mortgage availability dried up.

But the company argued it had performed strongly compared with ailing peers such as Taylor Wimpey and Barratt Developments, which suffered even heavier damage.

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