Persimmon ‘laying foundations for bonus scheme’

According to the Sunday Times, Persimmon is working on long- term bonus proposals for its bosses, including chief executive Mike Farley.

It was reported yesterday that the company hoped to put a final draft of the proposals to shareholders next month, with a vote in October.

Nobody was available for comment at Persimmon yesterday.

Last week, the company revealed that it had built more family homes to earn better margins in the first six months of the year, which had helped it to outperform a stagnant housing market.

The group, which also builds under the Charles Church and Westbury Partnerships brands, sold 4,712 homes, six per cent more than a year earlier.

Selling more town houses and detached homes instead of flats helped its average price increase by seven per cent to £171,206. The builder’s underlying pre-tax profits surged by 65 per cent to stand at £98.7m.

Persimmon has recovered strongly after a tough 2008-09 when it was forced to shed more than a fifth of its workforce.

Earlier this year, it unveiled a plan to return £1.9bn to shareholders over the next decade, and it has promised to grow with minimal debt.