Housebuilder cuts pay to top directors as revised bonus targets are missed in 2008
Boardroom pay at Persimmon more than halved last year as a result of the housing slump.
The housebuilder, which announced in February that no director would receive a bonus for 2008, paid out 拢2.6m to nine directors. Total pay in 2008, including bonuses, was 拢5.5m.
The announcement by Persimmon that it would not pay bonuses followed a report by 黑洞社区 that the company had widened the target it needed to hit to trigger bonus payments in 2008. The company said it had done so due to the 鈥渦ncertain outlook for performance鈥�.
It has done the same for 2009 due to what it called 鈥渢he difficult market conditions faced by the housebuilding industry鈥�. It said bonus targets, which are linked to pre-tax profit and cash generation, needed to reflect current trading conditions and incentivise directors.
In 2008, chief executive Mike Farley saw his pay drop by just under 拢1m 鈥� falling from 拢1.8m in 2007 to 拢862,320 last year. It comprised a basic salary of 拢633,450, which was unchanged from 2007, and other benefits and pension payments.
The second highest paid director was chairman John White, whose take-home pay fell from 拢1.8m to 拢725,885. Finance director Mike Killoran took home 拢405,280 compared to 拢1m in 2007.
Meanwhile, boardroom pay at Bovis Homes has fallen 11% from 拢1.4m to 拢1.25m for its nine directors. Chief executive David Ritchie took home a basic salary of 拢358,000, which was up 16% on 2007. No director took a bonus in either 2007 or 2008.
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