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Persimmon CEO Jeff Fairburn To Step Down

UK-based home builder Persimmon Plc. (PSN.L) said that Jeff Fairburn, Group Chief Executive, will step down. David Jenkinson, currently Group Managing Director, will be appointed as interim Group Chief Executive and will assume his new role on 31 December 2018 and Jeff will leave the Company on that date.

The company noted that Jeff has been a successful leader of the business since his appointment in 2013, but the Board believes that the distraction around his remuneration from the 2012 LTIP scheme continues to have a negative impact on the reputation of the business and consequently on Jeff's ability to continue in his role.

In a trading Statement covering period from 1 July 2018 to 6 November 2018, Persimmon also said private sales since we reported our half year results on 21 August 2018 have been 3% ahead of last year's strong comparatives.

The Group's outlet network has been 5% stronger through this period and will continue to support sales through into 2019. Persimmon is currently delivering new homes in 370 communities nationwide. It is now fully sold up for the current year and have 987 million pounds of forward sales reserved beyond 2018, an increase of 9% on the same point last year.

The company noted that it plans to open a new regional operating business in South Yorkshire in January 2019, located at our off-site manufacturing hub at Harworth, bringing the number of house building businesses in the Group to 31. Persimmon's home building activities support over 20,000 construction jobs on the Group's sites* and over a further 29,000 jobs in its supply chain.

David Jenkinson, currently Group Managing Director, will be appointed as interim Group Chief Executive and will assume his new role on 31 December 2018 and Jeff will leave the Company on that date. The Board has commenced a formal process to select a permanent successor.

David joined Persimmon in 1997 and was appointed to the Board in December 2013. He was appointed Group Managing Director in January 2016.

On 6 November 2018, Jeff and the Company agreed to the terms of a Settlement Agreement whereby his employment will end on 31 December 2018.

The arrangements in relation to Jeff's entitlement under the 2012 LTIP satisfy his contractual entitlement; the Remuneration Committee has not exercised any discretion in his favour.

Following the surrender of options announced on 23 February 2018, the second and final vest of all remaining options to all participants in the 2012 LTIP occurred in full on 2 July 2018.

The company said, "Whilst the Company has sought to mitigate the entitlement falling due to Jeff, as Jeff is leaving at the Company's request, legal advice has confirmed that the Company does not have any discretion to withhold or seek forfeiture over any of the "restricted" 2012 LTIP shares, although these continue to be required to be held until 6 July 2021."

The company has agreed with Jeff to reduce his 12 month notice period and therefore there will be no further payments of salary or provision of benefits (including pension) after 31 December 2018. Jeff has no bonus entitlement for 2018 and no awards under any of the Company's share plans other than his deferred bonus share scheme awards and unvested SAYE options, which will lapse on departure.

David Jenkinson's remuneration terms will not change on his appointment to interim CEO.

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