Barratt chief says Persimmon bonuses have hurt industry’s name

Copied from Building.co.uk

Reputation of housebuilders tarnished by generous bonus scheme that is ‘not the norm’, admits David Thomas

Building site with david 2015

The head of the country’s biggest housebuilder has said Persimmon’s decision to pay its executives eye-watering bonuses has saddled the industry with a reputation it pays its bosses too much.

Barratt chief executive David Thomas said the controversial bonus scheme, introduced in 2012, was “not the norm” and meant the industry was now having to fight off a perception its executives were netting excessive pay packets.

Persimmon’s latest annual report shows its long-term incentive plan helped chief executive Jeff Fairburn pocket £47m last year, while group finance director Mike Killoran was handed £36.7m with group managing director Dave Jenkinson picking up £20.3m.

Thomas told Building: “What you’ve seen is everyone getting dragged into it simply because it’s about housebuilders being paid too much money, so I think that reputationally it’s problematic for the industry, unquestionably.”

…. Sorry the rest of the interview is only available to subscribers, but you get the message – Persimmon are doing very nicely thank you very much.

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