Shareholder protest looming over Persimmon pay deal

PERSIMMON is facing a major revolt after City advisers told shareholders to withhold their support for the housebuilder’s controversial pay plans.

Chief executive Jeff Fairburn earned £47million last year and could make a total of £75million at current share prices from a 2012 pay plan that will hand 140 top staff as much as 6 per cent of the firm.

US advisers ISS have told shareholders they should abstain in a vote on the firm’s remuneration report due in ten days. It said: ‘A recommendation to support the remuneration report is not considered appropriate based on the excessive outcomes.’

The Investment Association has issued an amber alert on the firm’s pay to institutional investors, encouraging them to consider whether Persimmon has responded strongly enough to outrage over the pay bonanza.

Glass Lewis, another adviser, has already told shareholders to vote against the pay report.

Persimmon could be added to a governmentapproved ‘list of shame’ – a register of firms which have had major votes against pay – if 20 per cent of shareholders reject the remuneration report. A Persimmon spokesman said the company had already taken action, adding: ‘The CEO, Group MD and CFO have reduced their awards voluntarily by over £50million, capped the value of remaining options that have yet to vest and agreed to hold a substantial portion of these shares for an extra two years.’