Persimmon boss asked to leave over bonus “distraction”

persimmon

Persimmon boss Jeff Fairburn has been asked to leave the group over his £75 million bonus payout.

The housebuilder has said that the controversial bonus had become a “distraction” whilst also damaging the group’s reputation.

Fairburn’s bonus was reduced from £100 million but the reduced rate was still criticised by politicians, charities and shareholders.

“Jeff has been a successful leader of the business since his appointment in 2013, but the board believes that the distraction around his remuneration from the 2012 LTIP (long term incentive plan) scheme continues to have a negative impact on the reputation of the business and consequently on Jeff’s ability to continue in his role,” said the company.

The group said that it will not ask for any of Fairburn’s bonus back.

“Whilst the company has sought to mitigate the entitlement falling due to Jeff, as Jeff is leaving at the company’s request, legal advice has confirmed that the company does not have any discretion to withhold or seek forfeiture over any of the ‘restricted’ 2012 LTIP shares, although these continue to be required to be held until 6 July 2021.”

Fairburn will be replaced by replaced as the interim chief executive by David Jenkinson until a permanent replacement is found.

When asked about his bonus in an interview with the BBC last month, the Persimmon boss walked away.

“I’d rather not talk about that,” he said.

Labour MP Rachel Reeves commented on the walkout, saying it was “unfortunate” that “Mr Fairburn thinks he is above answering questions about his extravagant gains and the cost to the public purse”.

Since he took over in 2013, Persimmon’s stock market value had doubled to £7.5 billion.

Shares in the group (LON: PSN) are trading +1.15% at 2.383,00 (0849GMT).

 

 

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.