Persimmon cut £50m from directors bonus
Three top directors at Persimmon have agreed to bonus scheme changes that will see long term payout slashed by more than £50m the top executives attracted fierce criticism from share holders and politicians for over high payouts under the company’s long-term incentive bonus plan.
This week the firm announced that changes to the bonus system would see chief executive Jeff Fairburn give back around £25m of his potential £99m bonus, waiving the second instalment of his bonus.
He has also delayed the time he can claim the bonus to 2021.
Group managing director Dave Jenkinson will give back £2.5m of £40m under a different arrangement.
His boardroom colleagues chief financial officer Mike Killoran has agreed a similar move which will see him hand back £24m of his £78m payout.
Under the new plan all three will also have their future payouts capped at £29 per share.
Two board directors resigned last year after they felt they should have included a cap on the bonus scheme.
A board statement said: “The board believes that the LTIP put in place in 2012 has been a significant factor in the Company’s outstanding performance.
“In particular, it has contributed to industry-leading levels of margin, return on assets and cash generation.
“Nonetheless, it is clear that the absence of a cap, in recognition of which the chairman and former remuneration committee chair offered their resignations from the board on 14 December 2017, has given rise to the potential for pay-outs which, when triggered in full, will be significantly larger and paid earlier than might reasonably have been expected at the time the scheme was originally put to shareholders.”