The total pay awarded to Derwent London’s top team in 2016 fell sharply after the company’s shareholder returns were hit by the Brexit vote.
Derwent London’s chief executive John Burns received a pay package totalling £1.35m, down from £2.5m last year, according to the company’s annual report.
The pay awarded to all Derwent’s directors was also down significantly. The remuneration bill for Derwent’s executive and non-executive director almost halved year on year from £11.2m to £6.4m.
The reduction was the result of a lower cash bonuses and lower gains from equity-settled schemes.
Claudia Arney, chair of Derwent’s remuneration committee, said: “Whilst performance against the strategic objectives was strong, the committee recognised that this was not reflected in the financial or share price performance of the group which was dominated by the market effects of the Brexit vote.”
Like other listed property companies with significant exposure to the London office market, Derwent’s share price fell sharply in the wake of the EU referendum.
The vote also affected Derwent’s financial performance, with its net asset value per share slipping 1.3% in the second half of 2016.
However, the company reported a record year for leasing with lettings totalling £31.4m, on average 6.3% above December 2015 ERV.