Two board members resign after omitting to cap an incentive plan
Two board members at house building firm Persimmon have resigned after omitting to include a cap within an incentive plan.
Chairman Nicholas Wrigley has resigned from his position at the York-headquartered firm but will remain as chairman until a successor is found. The company’s senior independent director and chairman of the remuneration committee, Jonathan Davie, resigned from the board yesterday.
In an update this morning, 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.”
Nigel Mills has been appointed senior independent director with effect from 14 December and will lead the process of appointing a new chairman. Marion Sears has been appointed chairman of the Remuneration Committee.
Since 2012, when the Capital Return Plan Strategy was launched and the 2012 LTIP was approved by shareholders, the company has made substantial cash returns to shareholders at the same time as increasing the size of the business and delivering significant shareholder value.
Since the strategy was launched, Persimmon has delivered an increase in the number of new homes supplied of over 65%, invested £2.9bn in new land, returned 485p per share (£1.5bn) in cash and increased the proposed capital return by 49% to 925p per share, c. £2.85 bn.
