Persimmon chairman steps down over pay

The chairman of Persimmon is to quit the housebuilder following concerns over excessive executive pay at the firm.

Persimmon announced that Nicholas Wrigley intends to resign and also revealed that remuneration committee chairman Jonathan Davie has left the group.

It follows investor consternation over a long-term incentive plan introduced in 2012, which could see the management share £600 million depending on profit and housebuilding targets.

CEO Jeff Fairburn is in line for the biggest payout, set to top £100m.

Announcing Mr Wrigley and Mr Davie’s departures, Persimmon admitted the Long-term Incentive Plan (LTIP) could have been capped.

Persimmon said: “Nicholas and Jonathan recognise that the 2012 LTIP could have included a cap. In recognition of this omission, they have therefore tendered their resignations.”

However, Persimmon went on to say that since the award scheme was launched, the company has made “substantial cash returns to shareholders at the same time as increasing the size of the business and delivering significant value”.

It also added that Persimmon has delivered an increase in the number of new homes supplied and invested £2.9 billion in new land.

The company came under heavy fire this week after a row over out-of-hours working at its Lathro Meadows site at Kinross.

Councillor Willie Robertson lambasted the company as the “developers from hell”.

Persimmon chairman Nicholas Wrigley is resigning.