Persimmon defends £50m payout for Jeff Fairburn

 
Helen Cahill
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UK's Biggest Housebuilder Postpones Start On New Homes As Sales Slump
Persimmon's incentive plan was launched in 2012 (Source: Getty)

Persimmon chief executive Jeff Fairburn is set to receive a £50m share payout next month as the housebuilder hands out its share bonus scheme to executives.

Persimmon's incentive scheme, or long-term incentive plan (LTIP), will see 150 managers share a bonus package of around £800m.

Read more: Persimmon sales rise but analysts aren't impressed

The scheme, set up in 2012, is linked to the performance of the business. Over five years, Fairburn has been given packages of share options at different prices. In the new year, he will be able to exercise options on close to two million shares in the housebuilder. The payout will be one of the largest in UK history.

The company has defended the incentive scheme, saying the group has built around 72,500 homes since the incentive was launched, and has invested around £2.9bn in land.

Read more: What housing crisis? Persimmon profits jump by a third

A spokesperson for Persimmon said 85 per cent of shareholders approved of the scheme in 2012.

"The LTIP is a long-term plan that was intended to run for almost a decade and which is designed to drive outperformance through the housing cycle and to incentivise the management to deliver the capital return, grow the business and increase the share price," the spokesperson said.

"Unlike many other schemes, it extended to around 150 executives."

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