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BlackRock helps Persimmon avert revolt over chief's £25m pay

The biggest shareholder in Persimmon has thrown its weight behind the housebuilder‎'s board ahead of a crunch shareholder meeting on Wednesday that will provide another focal point in the debate about executive pay.

Sky News has learnt that BlackRock, which owns about 7% of Persimmon's shares‎, has voted in support of the company's remuneration report, which disclosed that its new chief executive was paid‎ almost £25m last year.

BlackRock's decision will help Persimmon avert a major pay revolt at Wednesday's annual general meeting, according to insiders, with well over 80% of investors expected to vote in support of the remuneration report.

That level of backing will come as a relief to Roger Devlin, the housebuilder's new chairman, who has sought to overhaul its approach to boardroom pay in the wake of fierce criticism from investors and politicians.

It will also contrast with the tone of last year's AGM, where almost two-thirds of investors opted not to support the company's pay plans.

Rachel Reeves, the Labour MP who chairs the Commons business select committee, recently described Persimmon's executive rewards as "a tale of corporate greed and incompetent pay management, financed on the back of a taxpayer-funded housing scheme".

Persimmon has been in the crosshairs of the ongoing row about executive pay, with critics fuelled by anger that much of its profit has been aided by the government's Help to Buy programme.

Dave Jenkinson, the former finance director who was appointed this year as the new chief executive, was among the participants in a 2012 long-term share scheme which has yielded massive windfalls.

Mr Jenkinson's predecessor, Jeff Fairburn, stepped down in December following a protracted dispute over the payouts.

Persimmon recently appointed Claire Thomas, the human resources chief at GlaxoSmithKline (GSK), to its board, with the intention that she becomes chair of its remuneration committee, according to insiders.

The company, which earned £1bn in profit last year for the first time, said on Wednesday that sales were slowing marginally as it seeks to address issues relating to the quality of its homes.

It recently announced the launch of a homebuyer's retention to provide fresh assurances that it is committed to customer care, and committed to an independent review examining related issues.

BlackRock and Persimmon declined to comment.