Bigger pay packet for G4S chief
Published 15/04/2013 | 13:11
The boss of security giant G4S took home a bigger pay packet in 2012 despite the company's botched handling of the Olympics Games contract.
G4S paid chief executive Nick Buckles a total £1.19 million in 2012, up from £1.02 million a year earlier, during a year the military was forced to step in to plug a gap left by the company's failure to provide all 10,400 guards needed for the Games.
The fiasco left G4S nursing losses of £88 million on the contract and Mr Buckles fighting for his job.
As well as an £830,000 salary, Mr Buckles' 2012 pay packet included £23,500 in benefits and £332,000 in payments in lieu of pension. Mr Buckles 2012 pay packet was boosted by bigger pension payments.
However, neither he nor other executive directors earned a performance-related bonus.
G4S said in its annual report Mr Buckles' and other executives' salaries were frozen in 2012 and will not increase this year - the fourth time in five years their salaries have been frozen.
But it revealed plans to increase potential long-term share bonuses this year to "ensure that the directors continue to be incentivised and motivated".
Mr Buckles' maximum shares bonus could rise to 2.5 times his salary from a maximum of two times in 2012 - meaning a potential £2.1 million in shares if he hits targets. Performance-related bonuses will also now depend on factors including organic growth, cash generation, strategic execution and organisation, instead of being tied purely to profits.
G4S's Olympics failure saw Mr Buckles hauled before MPs, during which he admitted it was a "humiliating shambles for the company''. Extra military personnel had to be called in to fill the gap left by G4S's failure to supply enough staff for the £284 million contract.
Mr Buckles said in the annual report it marked "one of the toughest periods in the group's history".