Carillion protected bosses’ bonuses before running into financial crisis

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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5 thoughts on “Carillion protected bosses’ bonuses before running into financial crisis

  1. NMac

    The story of Tory privatisation. Reward failure from public funds. These people should pay back all monies paid to them in the last 12 months.

  2. Lynn Jenks

    Radio 4 said their chairman was Philip Green. Not that Philip Green, surely? The one that sold his company for £1 and left them with nothing in the pension pot?

    1. Mike Sivier Post author

      A different Philip Green.
      There’s a new article on the way, and this will be part of it.

  3. aunty1960

    I think this comes from a background of student generation who’s mum always bailed them out, or their parents always came up with the goods and paid thousands and tens of thousands give little darlings whatever they wanted, For Gods sake dont punish them, smack their bottoms and be told they will be paying it off themselves.

    and all socialists can offer is violent revolution and smashing everything up.

    Anyone feel we are living in a juvenile detention centre with the doors open?

    1. Mike Sivier Post author

      You really need to get over your irrational hatred of socialism.
      Socialists offer a better way – and peaceful, unless the right-wingers try to protect their way of life by attacking us all (which has been known).
      Look to the right for violence. We see it in the abuse debate – it is the right-wingers who make the most appalling verbal attacks.

Comments are closed.