Three Persimmon executives share £100m bonus
Three executives at Persimmon were paid bonuses in excess of £100 million last year, the housebuilder has confirmed.
New figures have revealed that chief executive Jeff Fairburn was paid a total of £47m in 2017, finance director Mike Killoran received £37m and managing director David Jenkinson received £20m.
Last month directors agreed to forgo around £50m in bonuses following a political and shareholder backlash over the long term incentive scheme introduced by the company six years ago.
The pay controversy led to the resignation of chairman Nicholas Wrigley and remuneration committee chairman Jonathan Davie late last year. However, these latest figures were unaffected by last month’s £50m reduction.
In its annual report, Persimmon also confirmed that should shareholders approve a £1.10 dividend payment at the annual meeting in July, thereby reaching a long-term capital return plan target, a further bonus of £51m will be paid out to the executive team as part of the group’s 2012 long-term incentive plan. This is 50% what would have been paid after 50% was waived when the scale of payments became public. As part of this agreement the second tranche of the payouts must be held as shares for longer.
Writing in the annual report, new remuneration committee chairman, Marion Sears, said: “Under the agreement, the top three executives are legally entitled to receive these payments and legal advice re-confirmed that the remuneration committee had no discretion to modify them.”
Last week the firm appointed Roger Devlin as chairman from June 1.