Persimmon boss Jeff Fairburn shuts down interview after refusing to talk about £75m bonus

'I think that’s really unfortunate actually that you’ve done that,' chief executive of housebuilder says when quizzed about Britain's biggest bonus

Persimmon boss Jeff Fairburn is facing a backlash after walking out of a television interview when questioned about his £75m bonus.

Mr Fairburn was asked by a BBC journalist whether he had any regrets about taking the payout, which was considerably larger than that of any other UK public company last year.

In response, he said, “I’d rather not talk about that, it’s been well covered actually.”

When the reporter pressed him on the issue, he walked off camera saying: “I think that’s really unfortunate actually that you’ve done that.”

Mr Fairburn was initially awarded shares worth more than £100m in 2017 but after public outcry he agreed to reduce it to £75m.

The £75m bonus is equivalent to the annual earnings of 4,100 staff on the Real Living Wage.

It comes as part of a long-term incentive plan which effectively hands over 9 per cent of Persimmon’s shares – worth hundreds of millions of pounds – to senior managers over a decade.

Campaign group Share Action found that managers were in line to receive substantial rewards even with mediocre performance.

Persimmon’s results were also boosted by government subsidies for home purchases under Help to Buy, a policy introduced shortly after the bonus deal was agreed.

Speaking ahead of Persimmon’s annual general meeting in April, Euan Stirling, head of stewardship at Aberdeen Standard Investments, which owns a stake in Persimmon, said the reduction of Mr Fairburn’s bonus from £100m to £75m “did not even get close to acceptable”.

He said the “reputational damage associated with grossly excessive pay” endangered the company’s long-term success.

Former Persimmon chairman Nicholas Wrigley and remuneration committee chair Jonathan Davie quit the housebuilder in December 2017 after admitting failings over executive pay.

Announcing their departures, Persimmon admitted that the generous payout plan presided over by the duo “could have included a cap”.

Persimmon said: “The company introduced a Long Term Incentive Plan in 2012 (2012 LTIP).

“The board believes that the introduction of the 2012 LTIP has been a significant factor in the company’s outstanding performance over this period, led by a strong and talented executive team.

“Nevertheless, Nicholas and Jonathan recognise that the 2012 LTIP could have included a cap. In recognition of this omission, they have therefore tendered their resignations.”