Resignation of Persimmon Chairman


Ashley Hamilton Claxton, Head of Responsible Investment

15 December 2017

The resignation of Persimmon's Chairman, five years after the Long-Term Incentive Plan (LTIP) was introduced, is an acknowledgement of the mistakes made in the construction of the plan, as it did not take into account the impact that the national housing shortage and government support for the sector would have on performance.

Whilst we hold the remaining senior management team in high regard, we would ask that the Chief Excutive Officer and the remaining members of the pay committee acknowledge their errors and correct them.

Let this be a warning signal to pay committees in the UK that poor pay decisions can have long-term consequences.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.