Persimmon directors’ £3.43m in pay and benefits

The York-based group’s annual report revealed chief executive Mike Farley took home more than £646,000 in salary, a cash bonus of £621,700 plus pension and other benefits worth almost £225,000. That added up to £1.49m, compared with £1.27m in 2009.

The housebuilder, which owns the Charles Church and Westbury Partnerships brands, lifted underlying pre-tax profits to £95.5m in 2010 from £7m in 2009.

Finance director Mike Killoran’s total remuneration was £845,945, a 25 per cent increase on the £675,492 he received in 2009.

In total, Persimmon’s directors’ total pay and benefits added up to £3.43m in 2010, a 25 per cent increase on the £2.74m they earned the previous year.

“The committee’s policy for the executive directors’ remuneration is to provide remuneration which is performance orientated, closely aligns the directors’ interests with those of shareholders and which will retain a talented executive team who can deliver excellent long-term group performance,” said Persimmon in its annual report.

“The committee considers that the policy for executive directors’ remuneration is in line with current market standards and best practice.”

Persimmon’s revenues were 10.5 per cent higher at £1.57bn in 2010 and the group’s underlying operating margin more than doubled to 8.2 per cent.

Its total house sales increased 4.5 per cent to 9,384 legal completions, and the south again proved stronger than the “more difficult” north. Sales in its northern region were broadly flat at 2,145, while its average sales price there increased five per cent to £154,104.

The company has reduced net debt to £51m from £1.2bn at its peak.

The housebuilder said it increased Mr Farley and Mr Killoran’s salaries by two per cent at the start of 2011. It also increased their bonus potential from 100 per cent of salary to 150 per cent, to encourage management to “deliver above target results”.

Persimmon’s annual report is subject to shareholder approval at its annual meeting on April 21 in York.

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