Berkeley boss Tony Pidgley lands £23 million in shareholder payout hike

Berkeley founder Tony Pidgley will add another £23 million to his vast fortune after the housebuilder he founded showered shareholders with an extra £500 million windfall.

The company, which focuses on London and the South-East, first revealed plans to return £1.7 billion, or £13 a share, to investors by 2021 four years ago.

But it dramatically upped the scale of its ambitions, increasing the programme to £2.2 billion.

The shares surged 6%, or 201p, to 3554p.

The higher cash return target of £16.34 a share by 2021 also gives Pidgley and Berkeley’s senior management a higher hurdle to vault to achieve one of the richest bonus plans in corporate history.

Under the 2011 scheme the top team could share 17 million shares worth a staggering £600 million if they achieve the target.

Pidgley, who founded the business in the 1970s and once fought off a takeover bid from his own son, owns a 4.5% stake, putting him in line for the extra £23 million from the expanded scheme before any shares vest.

He is already worth more than £200 million and respected for his ability to pick the highs and lows of the property cycle. Two years ago he spent £10.5 million on one of Berkeley’s luxury flats in Belgravia.

Managing director Rob Perrins insisted the housebuilder was not calling the top of the market.

He said: “We signalled in June that if we had surplus capital we would look to return it. It is a reflection of the investment we’ve put into the business since 2009.