Foxtons chief executive Nic Budden received a bumper bonus of £248,000, up 14% on last year, despite the group’s first annual losses since its IPO.
Budden’s salary was static for the second year running at £550,000. In total, he took home £910,000 in salary, benefits, bonus and pension payments.
This is a small decline on his £914,000 pay packet, largely driven through a £34,000 cut in benefits.
CFO Mark Berry was awarded a bonus of £141,000, with his full 2018 remuneration at £480,000 against £490,000 for 2017.
Budden’s maximum bonus was £825,000, 150% of his salary and he received 30% of this. Berry’s was set at 125%, so £352,500, and he received 40% of this.
Reports of the payouts comes after the estate agency group last month reported its first annual loss since its IPO in 2013.
Foxtons recorded a loss of £17.2m in the year to December, down from a £6.5m profit in 2017. Profits have been on a steady decline from £42.1m in 2014.
Revenue fell by 5.2% to £111.5m and adjusted EBITDA fell by 76.2% to £3.6m, down from £15.1m last year.
The bonuses for the executive directors were split, with 60% based on financial objectives and 40% on strategic objectives. Budden’s was tied to EBITDA growth and Berry’s was based on EBITDA growth and cash conversion.
Sheena Mackay, chairman of Foxton’s remuneration committee, said: “Taking into account the difficult market conditions and the progress on key objectives for ensuring the long-term health of the business, the committee concluded the resulting remuneration outcomes were fair and appropriate, and should not be adjusted.”
For the coming year both will receive 1% salary increases and their bonuses will not change, with financial objectives still linked to adjusted EBITDA.
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