Persimmon is reducing bonus payouts to three top executives by £51m, including a £25m cut for its chief executive, after the UK’s second largest housebuilder was strongly criticised over its huge payout plans.
The FTSE 100 firm said a bonus of £100m for its chief executive, Jeff Fairburn, would be cut to £75m under the company’s long-term incentive bonus plan.
Finance director Mike Killoran will receive £24m less than the £78m he was originally due, and managing director Dave Jenkinson will see his bonus cut by £2m to £38m.
Persimmon has come under intense pressure both publicly and privately from politicians and shareholders for planning record-breaking bonus payouts to bosses after the company benefitted from the taxpayer-backed help-to-buy scheme.
This week the company’s sixth-largest shareholder, Aberdeen Standard Investments, labelled Fairburn’s bonus as “grossly excessive”, and said it remained “a huge concern” despite the executive’s recent pledge to donate some of his package to charity.
Last year, the Guardian revealed that Fairburn’s pay deal could be used to provide a council house for every homeless family in Yorkshire, where Persimmon is based.
Announcing the bonus reduction, the company said its remuneration committee was “fully supportive” of the decision. Persimmon’s chairman, Nicholas Wrigley, resigned in December over his role in orchestrating the pay scheme.
Fairburn said earlier this month he decided some time ago to give some of his bonus away but that he had wanted to take an “old-fashioned approach” and keep the decision private.
Speaking this month, he said: “It’s now clear that this belief was misplaced and so I am making my plans public and recognise that I should have done so sooner. I am setting up a private charitable trust which I plan to use to benefit wider society over a sustained period of time by supporting, in a very meaningful way, my chosen charities.”