MWB faces threat over bonuses

REBEL shareholders were threatening to disrupt an extraordinary general meeting of Marylebone Warwick Balfour today in protest at the property company's management bonus scheme and restructuring plans. The bonus scheme has been watered down after institutional shareholders including Morley Fund Managers and Jupiter Asset Management complained but some shareholders believe it is still too generous.

Founding directors Richard Balfour-Lynn, Joseph Shashou and John Harrison had wanted an incentive plan with no upper limit if they met their targets for returning money to shareholders after the expected break-up and disposal of the company's assets, including the Liberty department store and the Howard Hotel.

The institutions insisted on a £15m ceiling on the total payout with the founding directors not sharing in the first tranche of £8.6m. Morley's corporate governance specialist Anita Skipper said the fund would now vote in favour of the resolutions.

Some shareholders are also understood to have reservations about Brian Myerson, whose appointment as chairman will be put to the floor. The company said it expected the resolutions for its restructuring to be passed.