Deputy chairman Mike Allen, and non-executive directors Harry Littlefair and Brian Taylor, will all retire from the board on 31 December 2000 and will not be replaced.
The move follows Persimmon's reorganisation from four divisions to two, completed in March. The northern and southern divisions will have their own operational boards.
Chief executive John White explained that this had left the main board overpopulated. "It is all part of a planned strategy to allow the business to grow through the divisional boards." Following the changes, the main board will comprise five executive directors, led by John White, and four non-executives directors under Davidson as chairman.
Davidson, 59, will become non-executive chairman from 31 December 2001.
White said: "Duncan will take an active role in the business for many years to come".
Before establishing Persimmon in 1972, Davidson spent four years in the Army and two years working for Wimpey.
He founded housebuilder Ryedale Homes at the age of 26, selling out in 1972 to Comben Homes. Comben was later taken over by Trafalgar House subsidiary Ideal Homes, which Persimmon acquired in 1996.
In its latest results, for the six months to 30 June, Persimmon posted a 14% increase in turnover to £361m and a 36% jump in profits to £48.4m.
