Bosses at UK house-builder Persimmon are to take cuts to their bonuses worth £51m after criticism from shareholders.
The company’s bonus scheme, following a strong trading year, would have seen chief executive Jeff Fairburn pick up a £100m windfall in share options.
However, Persimmon chairman Nicholas Wrigley quit in December following protests from shareholders, while Fairburn offered to give a “substantial proportion” of his bonus to a charitable trust.
Boosted by help-to-buy scheme
This week Aberdeen Standard Investments, the company's sixth largest shareholder, said Fairburn's bonus was “grossly excessive” and that it remained a “huge concern”.
Now Persimmon has agreed to reduce the bonuses being paid out. Fairburn will receive £25m less; finance director Mike Killoran will take a cut of £24m, reducing his bonus to £78m; while managing director Dave Jenkinson will see his bonus cut by £2m to £38m.
The hefty bonuses follow a strong year, with group revenues up 9% to £3.42bn in 2017, according to a recent trading statement, with its forward sales book up 10% at £1.35bn.
Some critics said the company’s results had been artificially boosted by the government’s help-to-buy scheme. Persimmon’s full results for the financial year will be released on 27 February.