Chairman and remuneration committee head resign from FTSE 100 housebuilder Persimmon over huge payouts
The chairman of Persimmon is to resign, a day after City A.M. revealed that the housebuilder is set to hand over huge payments to its senior team.
Nicholas Wrigley has said he will leave the company once a successor has been found.
Senior independent director Jonathan Davie, who chaired the remuneration committee, also resigned yesterday.
This comes after City A.M. revealed that Persimmon’s long-term share awards plan would mean bosses would pocket huge sums.
Chief executive Jeff Fairburn alone will receive £50m in shares this month, the first payout in a scheme which will net him around £126m. The total payouts for 140 senior staff could reach an estimated £800m.
In a statement issued this morning, the company said that the long-term incentive plan could have included a cap, and that Wrigley and Davie were resigning in acknowledgement of this.
“The board believes that the introduction of the 2012 LTIP has been a significant factor in the Company’s outstanding performance over this period, led by a strong and talented executive team. Nevertheless, Nicholas and Jonathan recognise that the 2012 LTIP could have included a cap. In recognition of this omission, they have therefore tendered their resignations.”
Nigel Mills has stepped up to the position of senior independent director, while Marion Sears takes over the chair of the remuneration committee.