Russell Lynch: Persimmon shareholders shouldn’t let board off the hook over pay

Here's a good one. Persimmon boss Jeff Fairburn tells me today that the housebuilder’s decision to increase massively its share payouts to investors has nothing to do with the rumpus over its pay scheme.

For those who haven’t kept up, sleepy York-based Persimmon has been rivalling Glencore’s Zug-based titans in the “millionaire factory” stakes lately, thanks to the bonus scheme linked to its 2012 plans to return £1.9 billion, or 620p, to shareholders by 2021.

Five days after the company conceded that the scheme — which could have landed Fairburn £100 million-plus — was a little OTT, suddenly investors are getting some action of their own; an extra 375p a year, in fact — which will take total returns under the plan to more than £4 billion.

The scheme is reviewed every year, says Fairburn; a mere coincidence that it’s happened just after this PR disaster.

Pull the other one.

Why not last year? Shareholders condemned the egregious rewards on offer, but how many will be willing to speak out now that their mouths have been stuffed with gold?

When the shares are flying and the dividends are rolling in, it’s far easier to tolerate corporate largesse.

But the extra cash shouldn’t blind investors to the governance failings that brought about this mess in the first place.