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Expert Corporate Governance Service (ECGS)
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Taylor Wimpey - AGM 25 April 2019

Items 4 - 12: Elect or Re-elect the Board

There is insufficient independent representation on the Board (44% independent).  Additionally, there are more executives on the Board than is common in the UK market (44% executives).  

 Item 19: Approve the Remuneration Report

The structure is considered acceptable. Though there are concerns over the overlapping performance criteria used for the STI and the LTI, disclosure is generally good. The amounts paid during the year are not considered excessive and neither the CEO's salary nor his incentive pay are considered excessive.  No concerns were identified with the former CFO's severance payment.  We recommend shareholders vote in favour.

 Item 20: Approve political donations

The authority requested, GBP 250,000, is much higher than common market practice and exceeds ECGS guidelines. Accordingly, we recommend that shareholders oppose this resolution.

 Item 21: To approve the sale of an apartment to the CEO

Mr. Redfern is proposing to purchase, subject to shareholder approval, an apartment for the sum of £2,043,600.  Shareholders should note that employees are allowed a 5% discount on a single property within a 12 month period and this discount has been applied to this property.

The Company states that the transaction has been reviewed by the Companyns internal audit function.  The Board believes the terms of the proposed agreements will be fair and reasonable and that the prices being paid by will be the market value of each property. 

There is insufficient independent representation on the current Board, though there was sufficient independent representation during the past year.  The related party transaction does not appear to have any negative impact for shareholders.  The proposal is considered acceptable.

 

Underlying
Taylor Wimpey

Taylor Wimpey is a residential developer. Co.'s three divisions are: North, which covers its East and West Scotland, North East, North Yorkshire, Yorkshire, North West, Manchester, North Midlands, Midlands and West Midlands regional businesses; Central and South West, which covers its East Midlands, South Midlands, East Anglia, Oxfordshire, South Wales, Bristol, Southern Counties and Exeter regional businesses; and London and South East, which includes Central London and covers its East London, North Thames, South East, South Thames and West London regional businesses. In Spain, Co. builds homes in the locations of Costa Blanca, Costa del Sol and the islands of Mallorca and Ibiza.

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Expert Corporate Governance Service (ECGS)

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