Persimmon is set to fuel further anger over its pay this week as the house builder splits a £300m bonus between 130 staff.
The FTSE 100 company has been trying to quell outrage over the controversial long-term incentive plan (LTIP) it set up in 2012 with no bonus cap, leaving the firm’s top bosses cashing in huge sums following an unexpected surge in its share price.
But even more staff will become multi-millionaires today as the house building giant hands out the gigantic bonus to workers three years earlier than planned.
Aside from Jeff Fairburn, the chief executive, and two other top executives, the company’s 31 regional managers are expected to pocket the largest chunk of the payout.
The bonus scheme, thought to be the most generous LTIP ever undertaken by a UK corporate, was set out over a decade but executives are cashing in early after the firm beat performance targets.
Critics have suggested that the company’s soaring success has been due to the sale of “rip-off” leasehold contracts as well as the Government’s Help to Buy scheme.
Marion Sears, the head of Persimmon’s remuneration committee, was criticised by MPs after forgetting how much ordinary workers were paid, while Aberdeen Standard Investments is understood to be exploring whether it can prosecute Mr Fairburn over his reduced £75m bonus.
The backlash over the pay scheme forced Nicholas Wrigley, the former chairman, to resign in December.
The company’s share price has rocketed from £6.57 in 2012 to around £25.33 today. The unexpected surge in its value has made Persimmon’s LTIP’s bonus payments, which are linked to the share price, among the biggest ever seen in Britain. Investors believe it should have been linked to other targets, such as how many homes it builds.
Nigel Mill, the interim chairman, was forced to apologise for the company’s handling of bonuses at its…
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