Persimmon directors see bonuses slashed
Bosses at housebuilder Persimmon have moved to calm the furore over their hefty pay packets by handing back around £50 million in bonuses.
Chief executive Jeff Fairburn will see his near-£100m award trimmed by £25m after slashing the number of shares he can gain under a controversial 2012 long-term incentive plan (LTIP).
Chief financial officer Mike Killoran will have £24m lopped off his £78m payout, while Dave Jenkinson faces a smaller sum of £2.5m being snipped from a £40m award.
The cuts are based on the housebuilder’s closing share price on Thursday. Future payouts for three executives will also be capped at £29 per share.
In a statement, Persimmon defended the creation of the much-criticised pay plan, saying the LTIP had been a “significant factor in the company’s outstanding performance”.
The latest twist comes after Fairburn moved to deflect stinging criticism over his bonus last week by announcing plans to hand over a “substantial amount” of the award to charity.
The under-fire chief said he would set up a private charitable trust to support a number of charities selected by himself and his family. Persimmon has faced mounting pressure from politicians and some shareholders over the long-term incentive plan introduced by the company six years ago, which was set to pay out more than £200m. Royal London Asset Management said the pay awards were still “extremely generous” even after the cuts.