Taylor Wimpey bonus “slashed” from £1.08 million to £827,757 after leasehold scandal

“Housebuilder Taylor Wimpey has slashed 23pc from its directors’ bonuses in response to the scandal over punitive leasehold terms.

The company’s annual report shows that chief executive Pete Redfern received £827,757 through Taylor Wimpey’s executive incentive scheme (EIS), rather than almost £1.08m as originally planned.

Ryan Mangold, finance director, and James Jordan, legal director and company secretary, also received a 23pc cut in their bonuses for 2017.

Taylor Wimpey has come under fire for selling homes with leasehold terms which mean the ground rent payable by the homeowners doubles every 10 years. In some cases, this has made the houses unsellable.

The homebuilder said the scaling back of bonuses was a “meaningful and proportionate approach to take”, even though the leasehold issue had not directly inflated the bonuses last year.

Meanwhile, housebuilder Persimmon has confirmed that chief executive Jeff Fairburn will receive a total pay packet of £47m this year thanks to a generous long term incentive plan agreed in 2012 which came to maturity last year. His total bonus award was due to be around £100m over two years, although it was later reduced to £75m.

Mr Fairburn has said he will give some of the money to charity.”

https://www.telegraph.co.uk/business/2018/03/19/taylor-wimpey-slashes-bonuses-leasehold-scandal/

One thought on “Taylor Wimpey bonus “slashed” from £1.08 million to £827,757 after leasehold scandal

  1. I agree – “slashed” is hardly the word I would use.

    Personally I believe that the punishment should fit the crime. So when someone buys a home for (say) £300k, and then they find that it has an exponential ground rent and you cannot sell it for a reasonable price – and presumably have to “slash” say 4/5 from the price in order to sell it, then surely justice means that directors bonuses should be slashed by a similar amount – from £1m to £200k?

    Like

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