Following a Business, Energy and Industrial Strategy Committee evidence session on 6 June 2018 on executive pay, Rachel Reeves, Chair of the Business, Energy and Industrial Strategy Committee, described the executive pay award at Persimmon as "a tale of corporate greed and incompetent pay management".
On the morning of 6 June 2018, the BEIS Committee questioned firms including Persimmon and Weir Group on executive pay and measures being taken to tackle excessive boardroom pay awards. Witnesses included representatives from the companies’ remuneration committees and from institutional investors.
Commenting after the evidence session, Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, said:
"Executive pay at Persimmon is a tale of corporate greed and incompetent pay management, financed on the back of a tax-payer funded housing scheme. Persimmon paid out huge bonuses to the men at the top of the firm and yet this morning we have heard that Persimmon are unable to tell us how much average workers at the company are paid. If Persimmon can pay their Chief Executive £45 million, they must ensure they pay all their staff the Living Wage. As a Committee, we shall continue to take a close eye to the issue of corporate pay and examine what impact Government action, such as pay-ratio reporting, and new regulatory guidance is likely to have on delivering fair pay".
The session is part of the inquiry 'Corporate Governance – Delivering on fair pay', which is examining progress in simplifying the structure of executive pay and reporting and the role of remuneration committees, investors and shareholders in curbing excessive pay. It is also examining steps being taken by the Government, particularly the progress made following a previous BEIS Committee report published in April last year.