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Foxtons' chief Nic Budden enjoys big pay rise Foxtons' chief Nic Budden enjoys big pay rise
(35 minutes later)
Estate agent Foxtons has handed its chief executive a pay rise of at least 19% after he stepped into the breach when his predecessor resigned for personal reasons.Estate agent Foxtons has handed its chief executive a pay rise of at least 19% after he stepped into the breach when his predecessor resigned for personal reasons.
Nic Budden’s basic wage for this year will be £550,000, up from £461,250 in 2015, while his maximum bonus will rise from 125% of salary to a maximum of 150%.Nic Budden’s basic wage for this year will be £550,000, up from £461,250 in 2015, while his maximum bonus will rise from 125% of salary to a maximum of 150%.
Including bonuses and share incentive payments, Budden’s total pay packet could hit £2.3m for this year compared with the £856,000 he was given last year.Including bonuses and share incentive payments, Budden’s total pay packet could hit £2.3m for this year compared with the £856,000 he was given last year.
Chairman Andrew Adcock said the company’s pay committee “recognises that an increase of this magnitude is unusual” but said the hefty rise was agreed upon after “careful consideration and consultation with key shareholders”.Chairman Andrew Adcock said the company’s pay committee “recognises that an increase of this magnitude is unusual” but said the hefty rise was agreed upon after “careful consideration and consultation with key shareholders”.
Budden’s pay rise, revealed in the estate agent’s annual report, came despite a difficult year in which the company was affected by a fall in the number of transactions in the London housing market.Budden’s pay rise, revealed in the estate agent’s annual report, came despite a difficult year in which the company was affected by a fall in the number of transactions in the London housing market.
The slowdown saw the company’s shares slump 33% from 1 June until the end of the year, while it recorded a 3% fall in pre-tax profit to £40m.The slowdown saw the company’s shares slump 33% from 1 June until the end of the year, while it recorded a 3% fall in pre-tax profit to £40m.
But Foxtons said Budden still deserved the 19% pay rise because he had been historically underpaid.But Foxtons said Budden still deserved the 19% pay rise because he had been historically underpaid.
Budden moved up from the chief operating officer role when Michael Brown moved aside for “personal reasons” after 12 years with the company, seven of them at its helm.Budden moved up from the chief operating officer role when Michael Brown moved aside for “personal reasons” after 12 years with the company, seven of them at its helm.
And Foxtons hinted that its decision to promote from within had allowed the company to set his pay at a comparatively low level while he got used to the top job. Budden’s potential 2016 cash-plus-shares deal could be worth up to £2.3m, a 700% increase on the £327,000 he got in 2014, when he became chief executive halfway through the year.
Foxtons hinted that its decision to promote from within had allowed the company to set his pay at a comparatively low level while he got used to the top job.
“When the CEO was appointed to the board in July 2014, his remuneration was set at relatively low levels,” said Adcock.“When the CEO was appointed to the board in July 2014, his remuneration was set at relatively low levels,” said Adcock.
“This was deemed acceptable by both the CEO and the board as he adapted and grew into the enlarged role.” “This was deemed acceptable by both the CEO and the board as he adapted and grew into the enlarged role.
“Since then the CEO has demonstrated strong leadership and has handled well the increasing complexity and size of the business.”“Since then the CEO has demonstrated strong leadership and has handled well the increasing complexity and size of the business.”
He added that Budden was “very valuable” to the business and that his pay had been compared against those of executives with similar experience. He added that Budden was very valuable to the business and that his pay had been compared against those of executives with similar experience.
Budden’s potential 2016 cash-plus-shares deal could be worth up to £2.3m, a 700% increase on the £327,000 he got in 2014, when he became chief executive halfway through the year.
Foxtons also used its annual report to warn that it could suffer if Britain votes to leave the EU.Foxtons also used its annual report to warn that it could suffer if Britain votes to leave the EU.
The London-focused estate agent said a vote to leave could damage the capital’s position as a financial centre.The London-focused estate agent said a vote to leave could damage the capital’s position as a financial centre.
“The market may also be affected by any reduction in London’s standing as a major financial city caused by a decision by the UK to leave the EU,” the company said.“The market may also be affected by any reduction in London’s standing as a major financial city caused by a decision by the UK to leave the EU,” the company said.