Bellway changes bonus policy amid £50m loss
Apr 1 2009 by Peter McCusker, The Journal
HOUSEBUILDER Bellway revealed it has changed the bonus policy which sparked anger among shareholders as it unveiled a half-year loss of nearly £50m.
The Newcastle company’s results for the six months to January 31 show turnover plummeted by 45% to £320m while it lost £48.6m, which included a writedown on land values of £66.3m.
Managing director John Watson said sales had picked up in recent weeks, giving the company a “shot in the arm”.
He also said that following January’s row over the £632,500 package of bonuses split between himself and his fellow directors, Peter Stoker and Alistair Leitch, the company had reviewed its policy.
While the company’s performance means the trio are unlikely to be similarly rewarded anyway, Mr Watson said: “The remuneration policies have changed. More stringent rules have come into play. The market is much more difficult and therefore pay and rewards will come down accordingly.”
Mr Watson admitted mistakes had been made in the way it had handled the issue. “We could have handled it better. We did not communicate adequately with our shareholders, but we have been to see the main shareholders and explained our policy going forward.”
The company has now axed half of its workforce, leaving it with 1,200 staff, shaved costs in other areas and halved its land buying activity to 714 plots in the past six months, compared with 1,800 in the corresponding period last year.
