Managing director insists that long-term incentive plan will require 鈥榚xceptional performance鈥� from board
The Berkeley Group鈥檚 managing director has defended the firm鈥檚 bonus structure under which six directors are set to share a multimillion-pound windfall worth almost 拢290m at current share prices.
Speaking exclusively to 黑洞社区, Rob Perrins, who at current prices would receive a 拢74m share of the bonus pot, said the long-term incentive plan was justified as it would only be paid out in the event of exceptional performance over a 10-year period.
Award of the shares to the directors, who include Berkeley founder Tony Pidgley, are conditional upon the company returning 拢1.7bn in cash to shareholders - equivalent to 拢13 per share, by 30 September 2021.
Perrins described the calculation of the bonus, based on the share price as 黑洞社区 went to press of over 拢14.70p, as a 鈥渇antasy number.鈥� He said any calculation should take into account the fact that 拢13 per share would be given back to shareholders before the bonus was paid.
鈥淔or that number to be achieved, we鈥檒l have to be one of the top performing companies in the country.
鈥淨uite rightly we must get out of pay for non-performance. I [will] only get that [bonus] if Berkeley has a sustainable business going forward.鈥�
Speaking in the week of the launch of the government鈥檚 housing strategy, Perrins also hit out at the coalition鈥檚 decision to implement the Community Infrastructure Levy (CIL) planning tariff. He said: 鈥淭he biggest issue for us at the moment is the CIL. It鈥檚 making everyone just so uncertain. The government should suspend the implementation for five years until growth has got going.鈥�
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