Persimmon boss fights for his job

Board in talks over Fairburn’s future after TV interview disaster

THE boss of Persimmon is fighting for his job after he flounced out of a television interview when asked about his £75m bonus.

Jeff Fairburn’s position as chief executive of the housebuilder is in doubt as board members question his disastrous handling of the row over fat cat pay.

The Mail understands that chairman Roger Devlin and other directors are discussing Fairburn’s future as they seek to repair the company’s tarnished reputation.

Persimmon had hoped the furore over the chief executive’s pay would die down.

But the car crash TV interview last week in which 52-year-old Fairburn ( pictured) said he would ‘rather not talk about’ his bonus before describing the questions as ‘really unfortunate’ and walking off has prompted fresh questions about his position.

The clip, which has been viewed more than 1m times online, has also sparked outrage among families sold botched homes built by Persimmon.

An industry source told the Mail that the video ‘was a low point for the company’.

But a Persimmon spokesman said Fairburn still had ‘widespread support’ among investors.

Devlin, who became chairman in June after Nicholas Wrigley quit as the row over the bonus escalated, has spent recent days and weeks talking to shareholders about the future of the company.

Although Persimmon shares are down 25pc since hitting a record 2880p in June, they are still up 91pc since Fairburn took the top job in April 2013.

But while investors approve of the company’s financial performance under Fairburn, there are growing concerns at board level that the toxic pay row is damaging its reputation.

Fairburn, a married fatherof-four, has also faced sharp criticism this week from families and MPs who have raised concerns about homes built by Persimmon.

Some homeowners have reported damp and mould, dangerous fittings and even structural problems.

In Coventry a block of flats had to be evacuated earlier this year because the building was at risk of partial collapse in high winds.

That has fuelled anger at the company after it posted record profits of more than half a billion pounds for the first half of this year, with critics saying its booming success is partly down to the Government’s taxpayerbacked Help to Buy scheme.

Persimmon’s controversial bonus scheme was agreed in 2012 and rewards executives for returning cash to shareholders. The payment to Fairburn looked set to be worth £131m before it was cut. He has also pledged to give some money to charity.

But his handling of the situation has been criticised by industry rivals. One top industry executive said: ‘Jeff Fairburn is tarnishing our whole industry and bringing it into disrepute.’

Should Fairburn lose his job, finding a replacement from within the housebuilder is likely to prove difficult.

His two lieutenants, finance chief Mike Killoran and managing director Dave Jenkinson, have also been handed tens of millions of pounds through the bonus scheme.

Shares yesterday edged down 1pc, or 21p, to 2186p.