黑洞社区

Redrow chairman Steve Morgan has reignited his criticism of Persimmon鈥檚 bonus scheme branding it a 鈥渄isgrace鈥� that has allowed critics to accuse housebuilders of being too greedy.

Morgan said the controversy had led to accusations that the government鈥檚 Help to Buy initiative was being used by firms to ramp up profits and increase directors鈥� entitlements.

Earlier this year, Persimmon was forced to cut the bonuses it handed out to its top executives after coming under fierce criticism from shareholders, politicians and rival firms.

Under the long-term incentive plan, which it drew up back in 2012, Persimmon chief executive Jeff Fairburn was in line for a 拢110m bonus, chief financial officer Mike Killoran was set for a 拢78m payout and group managing director Dave Jenkinson was due to get 拢40m.

But Morgan (pictured), who publicly rebuked the bonuses earlier this year, used the firm鈥檚 annual results to condemn Perismmon鈥檚 bonus scheme in even stronger language calling it 鈥渁 disgrace that has left a cloud over the industry鈥�.

He added: 鈥淭he reality is that the vast majority of house builders鈥� bonuses are normal and perfectly acceptable.鈥�

And he said critics were using the furore to demand that the government鈥檚 Help to Buy scheme, introduced in 2013 and which has since been extended to 2021, be scrapped.

Liberal Democrat leader Vince Cable told 黑洞社区 earlier this year that bosses at Persimmon were 鈥渂asically pocketing large amounts of money gifted by the taxpayer for executives, which underlined the stupidity of Help to Buy鈥�.

But Morgan said: 鈥淲hat is just silly nonsense is saying that it [Help to Buy] is lining housebuilders鈥� profits. If we don鈥檛 build enough homes, we get criticised. If we do and make money, we get criticised. The focus should be on those it has helped which is first time buyers.鈥�

Morgan鈥檚 chief executive at Redrow, John Tutte, said getting rid of Help to Buy would be 鈥渞idiculous鈥� and added: 鈥淎nyone who comes to a common sense decision just won鈥檛 do that. It should continue as it is. If it鈥檚 not broken, don鈥檛 break it. It鈥檚 hugely successful.鈥�

In the year to June 2018, Redrow turned in a record set of numbers with pre-tax profit jumping 21% to 拢380m on turnover up 16% to 拢1.9bn. The number of homes its built during the period was up 9% to 5,913.