Redfern rewarded despite 拢604m pre-tax loss; Persimmon鈥檚 Mike Farley takes home extra 拢400,000
Peter Redfern, the chief executive of Taylor Wimpey, has been rewarded with a 拢788,000 bonus for pulling off the housebuilder鈥檚 marathon refinancing deal.
Redfern, 39, completed 10 months of negotiation over the housebuilder鈥檚 former 拢1.9bn debt pile last April. His total pay for 2009 was 拢1.7m, including his maximum possible bonus, even though the firm made a pre-tax loss of 拢604m.
Redfern鈥檚 windfall came in the same week that Mike Farley, chief executive of Persimmon, received a 拢406,000 bonus. He was paid a total of 拢1.3m for 鈥渃ash generation鈥, despite the firm laying off more than 2,000 staff since 2008, paying no shareholder dividend and making just 拢7m in pre-exceptional profit (see graphic, below).
Other housebuilders have yet to reveal their bonuses.
The amounts are expected to raise eyebrows among shareholders, although nobody is forecasting the level of revolt that Bellway encountered last year after it paid bonuses based on retrospectively altered criteria.
Robin Hardy, an analyst at KBC Peel Hunt, said: 鈥淭here鈥檚 clearly an issue here with executives in this sector taking advantage of things other than profit.鈥
Another analyst said: 鈥淩edfern was a financial director at George Wimpey, which is at the root of a lot of these problems. Should you really be rewarded for fixing a problem you were the architect of?鈥
On Persimmon, another analyst said: 鈥淚 think it is a fabulous company, but everything鈥檚 about timing. Even if you鈥檙e entitled to a bonus, don鈥檛 take one for 2009. It鈥檚 taking the piss.鈥
The bonuses will have to be agreed by shareholders at Persimmon鈥檚 annual general meeting on 22 April and Taylor Wimpey鈥檚 on 29 April.
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