Housebuilder to cull bonuses and cut pay by 20% in wake of coronavirus crisis
Housebuilder Persimmon has become the latest to slash pay of senior staff and non-execs in response to the disruption caused by the coronavirus pandemic.
In a brief update to the City issued after the markets closed on Thursday, the firm said that both executive and non-executive directors of the business will take a temporary 20% pay cut from 1 April.
The cut will run as long as the firm is unable to continue with construction work on site.
Persimmon said the business will also not pay any cash bonuses otherwise due in 2020.
The announcement follows similar action taken by rival Taylor Wimpey on Tuesday, which said its senior staff would take more severe pay cuts of 30% for the period of covid-19 inspired lockdown. Announcing the pay cut, Taylor Wimpey said the move had been made in part to preserve cash during the crisis.
Persimmon merely said the move was “recognition of the current extraordinary circumstances”. It also did not follow Taylor Wimpey in promising to forego the annual pay rise due to directors.
Both firms last week announced that they were suspending all work on site following Boris Johnson’s announcement of draconian social distancing measures designed to halt the spread of the coronavirus.
Taylor Wimpey chief executive Peter Redfern said he had taken a “moral” decision to shut sites after concluding it was not possible to comply with government guidance on social distancing.
Construction firms including Laing O’Rourke and Wates are among those to have also slashed executive pay in the wake of the coronavirus crisis.