Persimmon has revealed that Jeff Fairburn, the housebuilder’s group chief executive, is to step down.
The board said 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 Fairburn’s ability to continue in his role.
Fairburn was involved in what was generally seen as a car crash interview with The BBC last month. He walked off camera when questioned about his £75m bonus. He said it was “unfortunate” he had been asked about the payout before walking away.
David Jenkinson, currently group managing director, will be appointed as interim group chief executive and will assume his new role on 31 December 2018, the date of Fairburn’s departure.
The board has commenced a formal process to select a permanent successor.
Fairburn said: “It has been an honour to lead Persimmon through an exciting period of development. 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 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.”
