ShareSoc, the body that advises individual shareholders, said the 2011 long-term incentive plan (LTIP) is likely to amount to total payouts of more than £400m and is therefore “excessive”.
The pay of company chairman Tony Pidgley is also targeted. ShareSoc said it is “unnecessarily high” at £21m in 2015/16 and £23m in 2014/15.
“The main reason for the high pay is the excessively generous 2011 LTIP scheme, of which he receives 30% of the total pot,” said a ShareSoc statement.
Cliff Weight, ShareSoc spokesman on remuneration issues, said: “I think the Berkeley remuneration report fails the ShareSoc Remuneration Guidelines test of Clarity and Transparency.
“Rather than giving a balanced report to shareholders, the report reads more like a marketing brochure emphasising the positives and omitting the negatives.
“The key things the annual statement from the chairman of the Rem Com [remuneration committee] fails to mention are firstly the size of the 2011 LTIP total payouts and potential payouts (of over £400 million) that will significantly reduce shareholders’ returns.”
ShareSoc also complains that the remuneration report failed to mention that Pidgley owns £160m worth of shares and has options over five million more, and that he has an annual bonus potential of 300% of his salary.
ShareSoc described the remuneration report as an “unnecessary transfer of wealth from shareholders to management”.
Berkeley’s AGM will be on 6 September.