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Berkeley Group directors to share 60 million pounds payout - report
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LONDON (Thomson Financial) - The housebuilding entrepreneur Tony Pidgley and three fellow directors of Berkeley Group Plc. are to defy the gloom pervading the sector by getting a 60 million pounds share payout, according to The Sunday Times.
Pidgley and his colleagues will receive 7.0 percent of Berkeley, the housebuilding group, in a deal that was orginally struck nearly four years ago. Pidgley had pledged to return 12.00 pounds a share to shareholders and be awarded 15.0 percent of the company.
Berkeley shareholders have already been given 900 pence in stage payments, but agreed to delay the final payment so that the housebuilder could take advantage of cheap land prices.
As a result, they have agreed to fast-track the top directors' payout but have cut the bonus to three-quarters of the original deal.
Pidgley and his co-directors have agreed that they can sell only a small proportion of their shares each year, but will get a further 18 million pounds when the final 300 pence a share is distributed.
The bonus package comes at a time of deep gloom in the industry. Two of the big names in the sector, Barratt Developments Plc. and Taylor Wimpey Plc. are in talks with their banks to renegotiate lending covenants or raise money.
This week, Persimmon Plc. and Redrow Plc. will underline how challenging the markets have become when they issue gloomy trading statements.
tf.TFN-Europe_newsdesk@thomsonreuters.com
ml/jlw
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