Housebuilder has revealed that top executives will not get bonuses after targets were not hit
Housebuilder Persimmon has revealed its top executives will not receive performance bonuses in 2008.
The move follows uncertainty over whether the company would pay bonuses after Building reported this week that it had widened performance targets for last year.
A Persimmon spokesman said no bonuses would be awarded because targets had not been hit. They said: “The bonus criteria were approved by 96.7% of shareholders at the AGM last year. They were not met and so there will be no bonus payments to executive directors in 2008.”
Its decision to change targets was likened to a “widening of the goalposts” by one accounting source this week and investor consultancy Pirc said the bonus system was undermined by such changes.
Last month a move by housebuilder Bellway to award bonuses despite failing to meet targets was vetoed by shareholders at its Annual General Meeting.
There have also been growing calls in recent weeks for restraint on executive pay among investor groups that include Aviva Investors the Association of British Insurers.