SENIOR construction firm officials embroiled in a reported £800m bonus row have bowed to pressure and capped future pay-outs.

Persimmon bosses Jeff Fairburn, Mike Killoran and Dave Jenkinson will see proposed windfalls reduce after acceding to policy changes.

The Echo understands chief executive Mr Fairburn, expected to pick up more than £100m, will see his hand-out cut by around £30m.

Mr Killoran will also reportedly take £24m less than an original £78m figure, with Mr Jenkinson shaving £2m off a £40m pot.

The situation centres upon a long-term incentive plan, first announced in the aftermath of the economic downturn in 2012, which is expected to see top officials share as much as £800m.

The scheme was designed to reward more than 130 executives with hand-outs linked to the share price of the company, which has offices in Bowburn, near Durham City, with the first tranche of awards due to be exercised next week.

However, the plan has received criticism since Persimmon, headquartered in York, has benefited from the Government’s Help to Buy scheme, which provides support to get more people on the property ladder.

It has also drawn the resignations of chairman Nicholas Wrigley and remuneration committee chairman Jonathan Davie.

Mr Fairburn last week attempted to take some sting out of the situation by revealing he will use a “substantial amount” of his pay-out to establish a private charitable trust, though he declined to disclose an exact figure.

Referring to the changes, a spokesman said: “The board believes the plan has been a significant factor in the company’s outstanding performance, contributing to industry-leading levels of margin, return on assets and cash generation.

“Nonetheless, it is clear the absence of a cap has given rise to the potential for pay-outs, which, when triggered in full, will be significantly larger and paid earlier than might reasonably have been expected at the time the scheme was originally put to shareholders.

“The decisions by the executives have been welcomed and fully supported by the remuneration committee, and the board recognises them as an appropriate response.”

Under the terms of the changes, Mr Fairburn and Mr Killoran, the firm’s chief finance officer, will cut their overall entitlement by a number of shares equal to 50 per cent of those they would have become eligible for in a second tranche of awards.

Mr Jenkinson, group managing director, has also decided to reduce his overall entitlement by a number of shares equal to 50 per cent of the shares subject to awards granted to him since being promoted to the board.

There will be no changes to the incentive plan for other participants.

The housebuilder has developments in Shildon, County Durham, and Aykley Heads, on the outskirts of Durham City, as well as sites in Shotton, near Peterlee, east Durham, and Northallerton, North Yorkshire.

Its brands include Charles Church, which lists a Darlington Feethams development in its portfolio.