IoD under fire for saying Persimmon chief ‘within his rights’ over £130m pay
THE head of an influential business group faced criticism last night for defending Persimmon boss Jeff Fairburn’s £130million bonus.
The construction chief has been beset by calls to give part of the payout to charity. Critics argue the bonus, which is linked to Persimmon’s share price, has been boosted by the taxpayer-funded Help to Buy home loan scheme.
But Stephen Martin, head of the Institute of Directors, said Fairburn was ‘within his rights’ to take the bonus. Martin, who ran construction firm Clugston, added: ‘After all, the scheme was set by the board and approved by shareholders.’
Fairburn responded to questions on his bonus for the first time last week, but only to say it was a ‘private matter’.
Catherine Howarth, chief executive of ShareAction, said: ‘This is the kind of thing that makes people think the senior echelons of British business are really only out for themselves. It’s of huge public interest – and it’s of interest to groups like the IoD.’
Stefan Stern, director of the High Pay Centre, called Martin’s stance ‘odd’ compared to the ‘more critical’ view of previous IoD chief Simon Walker on pay, who said in 2016: ‘At this point the need for change is a pragmatic one, even more than a moral one.’