Scottish analysts were among those to support Persimmon chief executive Jeff Fairburn's step-down over the fall-out after his £75 million pay award earlier this year.

One senior figure said the housebuilder's reputation had been "tarnished" by the issue which Persimmon described as a "continuing distraction".

Persimmon said that Mr Fairburn would stand down in December "by mutual agreement and at the request of the company" after ongoing criticism about his pay.

Mr Fairburn’s pay packet prompted anger among politicians and shareholders earlier this year in an award that was initially to be a £100m but of which he voluntarily handed back £25m.

However, controversy over the award did not subside and Mr Fairburn awkwardly walked off camera during a BBC interview when the subject was raised.

Euan Stirling, head of stewardship at Aberdeen Standard Investments, said the firm backed the resignation.

He said: "Persimmon’s reputation has been tarnished by issues around Jeff Fairburn’s pay.

"We welcome the action taken by the board and we will continue to engage with the company in order to help, where we can, with the restoration of the company’s standing."

The news came as the group moved to restate its positive outlook for the year in a trading statement.

It said forward sales are nine per cent ahead of the same period last year, standing at £987m.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Jeff Fairburn’s unexpected and reluctant exit goes to show external influences aren’t always a friend.

"Pressure over pay has clearly tipped the scales."

Roger Devlin, Persimmon chairman, said that "given the continuing distraction around the scale of his (Mr Fairburn's) remuneration ... the board believes that it is now necessary for there to be to be a change of leadership".

Persimmon group managing director David Jenkinson will be appointed as interim chief executive.

Mr Fairburn said: “I had hoped that revealing my plans to create a charitable trust and to waive a proportion of the award would enable the company to put the issue behind it.

"However, this has not been the case and so it is clearly now in the best interests of Persimmon that I should step down."