Persimmon chief executive resigns

Persimmon group chief executive Jeff Fairburn is stepping down from his role at the housebuilder “at the request of the company”. Fairburn’s controversial pay deal and subsequent £75m bonus payout has created “continuing distraction”, according to the board. Earlier this year, Fairburn vowed to donate a “substantial” amount through a charitable trust. However, he has now said: “I 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 of the 2012 LTIP [long-term incentive plan] 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.” Persimmon said: “Jeff has been a successful leader of the business since his appointment in 2013, but the board believes that the distraction around his remuneration from the 2012 LTIP scheme continues to have a negative impact on the reputation of the business and consequently on Jeff’s ability to continue in his role.” David Jenkinson, currently group managing director, will be appointed as interim group chief executive, with effect from 31 December. Fairburn will leave the company on the same date. The board said it had begun a formal process to select a successor. Persimmon added it would not be taking back any of Fairburn’s £75m bonus. It said: “Whilst the company has sought to mitigate the entitlement falling due to Jeff, as Jeff is leaving at the company’s request, legal advice has confirmed that the company does not have any discretion to withhold or seek forfeiture over any of the ‘restricted’ 2012 LTIP shares, although these continue to be required to be held until 6 July 2021.” Fairburn will not receive salary or pension payouts after 31 December.   To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette