GVA is phasing out company cars and removing fuel cards for its directors as part of a UK-wide drive to cut costs.
The agent is cancelling the benefits for its most senior staff and replacing them with a flat rate financial package, thought to be worth between £8,000 and £13,000 pa.
GVA said the new measure, which spells the end of financial assistance with car tax, fuel and maintenance, was in line with the industry standard. GVA will also now provide an insurance allowance for senior staff.
The move is expected to save hundreds of thousand of pounds a year.
The new policy has angered some directors, however, with one even seeking legal advice to contest the changes.
Managing director Malcolm Whetstone said: “Before we see profits from new wins and recent acquisitions add to our bottom line, we feel it prudent to be doing all we can to reduce costs.
“GVA has the most attractive car policy in the market. Removing elements of our existing policy means we will become closer to the rest of the market. Our current policy provides company cars and cash allowances. We will therefore phase out company cars and replace these with an additional fixed-sum cash allowance.”
He added: “Despite trading conditions in the UK worsening over the summer, our turnover and budget forecasts remain good, and we continue to perform well.”
According to last month’s EG Top Agents survey, pressure on margins is the single biggest threat to business.
james.buckley@estatesgazette.com
