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Bonuses: Carillion is under pressure to recoup some of the millions of pounds shelled out to former chief exec Richard Howson (pictured) and ex-finance chief Richard Adam.

What an astonishing coincidence!

And what an amazing stroke of luck that these executive bonuses were protected months before anyone had any idea that Carillion would get into financial trouble.

Isn’t it?

Now, instead of having to fund the hole in its finances from its own resources, Carillion and its lenders are expecting us – you and me – to subsidise its failures. Here’s Martin Shovel to explain, better than This Writer managed in my previous article:

Troubled engineer Carillion introduced tougher rules that protect bonuses paid to bosses – just months before it was embroiled in an accounting crisis that wiped £600 million off its shares.

The firm changed the wording of its pay policy to make it harder for investors to claw back bonuses paid to executives in the event it ran into financial difficulty.

Essentially, this means that executives would have to be guilty of fraudulent behaviour rather than just the more general failure of the firm.

In recent days Carillion has been under pressure from investors to recoup some of the millions of pounds in bonuses paid to former chief executive Richard Howson and ex-finance chief Richard Adam when they were in charge.

A probe by the Mail has found that previously bosses could have been forced to hand back their annual bonus and share awards in ‘circumstances of corporate failure’.

Source: Carillion protected bosses’ £4m bonuses before crisis | This is Money


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