Persimmon chairman resigns over executive pay dispute

He will stay on as chairman to allow an orderly process while the board seeks a successor. Meanwhile, senior independent director and chairman of the Remuneration Committee, Jonathan Davie, resigned from the board on Thursday.

Back in 2012, the company put in place a long-term incentive plan. It said on Friday that the introduction of the LTIP has been “a significant factor in its outstanding performance over this period”, led by a strong 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.”

Persimmon added that since the strategy was launched, it has delivered an increase in the number of new homes supplied of over 65%, invested £2.9bn in new land, returned 485p per share in cash and increased the proposed capital return by 49% to 925p per share, around £2.85 bn.

The company will now look to appoint a new chairman and will update the market on this in due course.

Also on Friday, the group said Nigel Mills has been appointed senior independent director with effect from 14 December and will lead the process of appointing a new chairman. In addition, Marion Sears has been appointed chairman of the Remuneration Committee, also from 14 December.