The bosses of Britain’s largest housebuilder Persimmon are in line for a potential £600m-plus windfall after a bumper year fuelled by the housing market recovery.
More than 130 of the group’s senior management are expected to share in the award in December as part of a long-term incentive scheme launched three years ago.
In total, around 30m shares will pay out to executives by the end of December 2021, which at Friday’s closing price of £20.64 could be worth around £620m.
Housebuilder bosses are enjoying generous payouts following strong performances buoyed by the country’s house market recovery and the government’s Help to Buy scheme.
Berkeley Group’s founder and chief executive Tony Pidgley took home £23.3m last year after profits at the London-focused housebuilder surged by more than 42 per cent.
Persimmon last week boasted an impressive performance in the first half of the year, with pre-tax profits up 31 per cent to £272.8m on revenues up 11 per cent to £1.3bn.
To earn the bonus payout, which is designed to retain and attract key members of staff, Persimmon must pass a number of hurdles including profit targets.
It must also payout £1.9bn to shareholders – £6.20 per share – between now and 2021.