What do you think about the Persimmon bonus plan?

[nmb]

UK housebuilder Persimmon has been in the news with a directors bonus scheme which was uncapped and could end up costing shareholders up to £800m!

https://www.theguardian.com/business/2017/dec/15/persimmon-chair-resigns-chief-executive-obscene-bonus

Any views?

 

[diyhelp]

Members of the bonus scheme have done nothing wrong although it does seem to be taking the bonus system a little too far and does not cast capitalism in a good light. The help to buy scheme also seems to have played a big part in the performance of Persimmon. The perils of operating in a free market

 

[realdeals]

Personally I see little wrong in the idea of incentivising management and staff to perform better, as long as shareholders benefit more. It is not necessarily the scheme which is causing negative sentiment but the numbers involved. I believe they are between £500 million and £800 million.

 

[diyhelp]

It is the numbers which seem to be upsetting people - yes, they may be on the high side but collectively investors have made a lot more.

 

[nmb]

The fact is that while governments like to meddle in businesses when they are doing well, are they prepared to bailout private businesses when they are struggling? The simple answer is no! So, let private companies enjoy the good times because the not so good times may just be around the corner.