黑洞社区

Persimmon has asked its chief executive Jeff Fairburn to step down following the ongoing row over his 拢75m bonus.

The housebuilder said the 鈥渄istraction around his remuneration鈥� continues to have a negative impact on the reputation of the business and consequently on Jeff鈥檚 ability to continue in his role鈥�.

Fairburn was appointed in 2013 but will leave at the end of the year.

His pay packet was reduced earlier this year from 拢100m to 拢75m after a public and shareholder outcry with industry peers also wading into the row.

In September, Redrow founder Steve Morgan told 黑洞社区 that Fairburn鈥檚 bonus scheme was 鈥渁 disgrace that has left a cloud over the industry鈥�.

And earlier this year, David Thomas, the chief executive of the country鈥檚 biggest housebuilder, Barratt, told 黑洞社区: 鈥淲hat you鈥檝e seen is everyone getting dragged into [the Persimmon bonus row] simply because it鈥檚 about housebuilders being paid too much money, so I think that reputationally it鈥檚 problematic for the industry, unquestionably.鈥�

Fairburn (pictured) was awarded the amount under a long-term incentive award drawn up in 2012 but critics, such as Lib Dem leader Vince Cable, said he profited far too much personally from the success of the government鈥檚 Help to Buy initiative launched the following year.

In a statement announcing his departure, Fairburn admitted: 鈥淚 had hoped that revealing my plans to create a charitable trust and to waive a proportion of the award would enable the company to put the issue behind it. However, this has not been the case and so it is clearly now in the best interests of Persimmon that I should step down.鈥�

Group managing director David Jenkinson, who picked up 拢40m under the same plan which saw Fairburn handed his 拢100m bonus, has been appointed as interim group chief executive. Persimmon said it has already begun the hunt for Fairburn鈥檚 replacement.

Cenkos analyst Kevin Cammack said: 鈥淚f stakeholders have hounded Jeff out, why stop there? Aren鈥檛 the FD Mike Killoran and David Jenkinson next in line? After all they have been eating from the same [long-term incentive] trough. Where is a line drawn? In its history, Persimmon has always appointed internally for its CEOs but that may have to change now.鈥�

In a trading update for the third quarter, the firm said it had sold 3% more homes during the period than last year and plans to open a new regional operating business in South Yorkshire in January from its off-site manufacturing hub at Harworth.