BOSSES at York-based Persimmon are set to hand back around £50 million in bonuses.

The housebuilding company came under-fire after chief executive Jeff Fairburn was awarded more than £100 million, chief financial officer Mike Killoran was handed £78 million and Dave Jenkinson was given £40 million in awards under a long-term incentive plan (LTIP).

Earlier this month, Mr Fairburn announced he is setting up a charitable trust amid controversy surrounding his record £110 million bonus, and last year chairman Nicholas Wrigley announced he would step down after failing to cap the company’s pay scheme, which led to a bonus package totalling £500 million for the company’s directors.

Yesterday, it was announced Mr Fairburn will see his bonus cut by £25 million, Mr Killoran will have £24 million slashed from his payout, and Mr Jenkinson’s bonus will be reduced by £2.5 million, with cuts based on the housebuilder’s closing share price on Thursday.

Persimmon said future payouts for the executives will be capped a £29 per share, and defended the pay plan, saying the LTIP had been a “significant factor in the company’s outstanding performance”.

The company had faced pressure from politicians and some shareholders over the LTIP, and Royal London Asset Management (RLAM), which holds a 0.5 per cent stake in Persimmon, said the pay awards were still “extremely generous” even after the cuts.

Ashley Hamilton Claxton, head of responsible investment at RLAM, said: “We are pleased that in the end Persimmon’s board has listened to shareholder concerns on pay.

“This incident has been a classic corporate governance failure and highlights the need for remuneration committees to step up and make decisions if circumstances beyond a company’s control change.

“We have consistently called for remuneration committees and boards to use their discretion when faced with payouts that are unacceptable and are pleased that in this case the company has finally recognised the need to do this.

“However, even after this reduction, in our view the scale of the remuneration on offer under this plan is still extremely generous given the government’s support for the sector through the Help To Buy scheme.”

While the LTIP was approved by 85 per cent of shareholders in 2012, the controversy around the company not only forced the resignation of Mr Wrigley, but also remuneration committee chairman Jonathan Davie.