Executive Director Builder persimmon insisted that he deserves his $ 110m bonus, because he “worked very hard” to revive the housing market.
Jeff Fairbairn collected the first 50 million pounds worth of stock in New year’s eve with a record bonus scheme, which has been described as “obscene” and “corporate robbery”. He will qualify for another £60m profit from the scheme this year.
Speaking for the first time after the award was confirmed, he repeatedly refused whether he intends to donate the money to charity.
“I think my plans for any charity to be a private matter and I don’t want to comment on that,” said Fairbairn.
“You have to put this into context of what has been achieved. I fully recognize that potential payouts under the scheme for the upper part of the face, is very significant.
“The scheme is about 140 people and it is always team work,” he added. “Of course, I am responsible at the end of the day and the business did very well. We worked really hard as a team to get to where we are now, and we continue to be invigorated and we continue to push the business forward.”
The scheme is the most generous in the history of the UK bonus payments will be more than £500m to those 140 senior staff. More than 80 have the right to receive payments in excess of 1 million pounds. Finance Director Mike Killoran, will receive £86m and managing Director, Dave Jenkinson, standing in line for £48 million.
The scale of the bonus Fairbairn this provoked criticism from politicians, charities and experts on corporate governance. Vince cable, liberal Democrat leader, said that “the scale of this bonus is obscene,” adding that it is a disgrace that Fairbairn can profit from “government subsidies” – a reference to aid in the acquisition scheme introduced in 2013, the former Chancellor George Osborne to help homebuyers.
More than half of the homes sold in York, persimmon last year went to help in the acquisition of the recipients, meaning the state money has helped Finance the sale. The share price of persimmon has nearly tripled since help to buy launched in April 2013.
“It reminds me of the worst excesses of corporate greed that helped create the financial crisis, when short-termism is strongly motivated and long-term planning ignored,” said cable.
Garry white, chief investment commentator stockbroker Charles Stanley, said the scale of the bonuses meant control persimmon “would be easy to blame corporate robbery”.
Chair persimmon, Nicola Wrigley, resigned last month, saying that he regretted not sent by the bonus scheme and goes “in recognition of this omission”. Wrigley realized that the pressure on Fairbairn to donate any bonus to charity.
“The guardian” has estimated that only a portion of the bonus Fairbairn can build enough homes to end homelessness in new York city. A donation of £4.6 m, with only 4% bonus Fairbairn – could provide shelter for all of the 58 homeless families in the city.
Fairbairn said he was “very proud” to charity persimmon supports, but are unable to name any of the charities.
The company has donated £1.1 m to charity last year, far below the average FTSE 100 company donation of £3.8 m.
To trade updated on Tuesday, said that the fruit that was sold last year 16,043 house totaling 3.42 billion, up 9% relative to 2016. As a result of the increase in sales, “we assume that our pre-tax profit for the year will be slightly exceeded market expectations”, it said in a statement.
Analysts expect the company to post 20% growth in annual profits of around £957m, according to a survey by Reuters. Persimmon will publish the results of the year to 27 February.