December 15, 2017 / 8:13 AM / 2 months ago

Persimmon chairman, senior director quit over pay plan omission

LONDON, Dec 15 (Reuters) - The chairman and senior independent director of Persimmon, Britain’s second biggest housebuilder, have resigned after recognising they did not put a cap on a lucrative management incentive scheme introduced in 2012.

Persimmon was criticised by investors earlier this year over the extent of its director pay. The Financial Times said the incentive scheme had lined up a 232 million pound ($311.55 million) pay-out to three directors.

The group said on Friday Nicholas Wrigley, chairman since 2006, would remain in the role to allow an orderly process while the board seeks a successor.

It said Jonathan Davie, senior independent director and chairman of the remuneration committee, resigned from the board on Thursday.

“The board believes that the...long term incentive plan (LTIP) has been a significant factor in the company’s outstanding performance over this period, led by a strong and talented executive team,” it said.

“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.”

Shares in Persimmon have increased 57 percent over the last year.

Persimmon said Nigel Mills has been appointed senior independent director, while Marion Sears has been appointed chairman of the remuneration committee. ($1 = 0.7447 pounds) (Reporting by James Davey; editing by Kate Holton)

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