Carillion bonuses and severance payments stopped

Bonus payments to directors and former executives at collapsed construction giant Carillion have been stopped.

The move came amid political anger about bumper payments to executives who had been in charge as the firm headed for the rocks.

The Insolvency Service said payments, including those included in severance packages for former executives, had been halted after the firm went into liquidation on Monday.

A spokesman said: "Any bonus payment to directors, beyond the liquidation date, have been stopped and this includes the severance payments which were being paid to some senior executives who left the company."

At Prime Minister's Questions, Labour leader Jeremy Corbyn lashed out at the "wildly excessive" bonuses paid to directors.

Jeremy Corbyn hit out at
(PA)

Carillion's former chief executive Richard Howson pocketed £1.5 million in salary, bonuses and pension payments during 2016 and, as part of his departure deal, Carillion agreed to keep paying him a £660,000 salary and £28,000 in benefits until October.

Former finance chief Zafar Khan, who left Carillion in September, was due to receive £425,000 in base salary for 12 months.

Interim chief executive Keith Cochrane was due to be paid his £750,000 salary until July, despite leaving the company in February.

Mr Corbyn told MPs there was "one rule for the super rich, another for everybody else" and asked Theresa May to guarantee that "not a single penny more will go to the chief executive or directors of this company".

The Prime Minister said the Official Receiver's investigation into the firm would "look into the conduct not just of current directors but also of previous directors and their actions".

It was possible to take action to claw back bonuses that have already been paid, she indicated.

"The Official Receiver does have the power to ensure that, in reviewing payments to executives, where those payments are unlawful or unjustified he can take action to recover those payments," the Prime Minister said.

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