Builder faces bonus revolt
Investor fury at £800m Persimmon payouts
HOUSE builder Persimmon is braced for a shareholder backlash today over an £800million bonus bonanza.
Investors are set to use the firm’s annual general meeting to attack the bumper payouts.
Reports say as many as half of the FTSE 100 firm’s shareholders will abstain or vote against its pay plans. Persimmon’s long-term incentive scheme, agreed in 2012, could see around 130 managers share £800m.
It has triggered renewed anger over boardroom excess.
Jeff Fairburn was in line for £110m before pledging to give a big chunk to charity.
The expected shareholder revolt comes amid reports that the Government is gearing up to force firms to reveal the pay gap between their chief executive and average worker. Research shows the ratio in 2017 stood at 129 times more. Campaigners will also used today’s Persimmon AGM in York to call on the firm to pay all staff and contractors the voluntary living wage. Pressure group ShareAction has gained support from shareholders NEST and the Strathclyde Pension Fund. Clem McCulloch, from ShareAction, said: “Persimmon relies on the hard work of its builders and yet it’s the executives who profit. It’s positive news to see the company’s investors speaking out for fair pay across the board.”