CITY WHISPER: BAE Systems increases bonuses to hold big guns
CITY WHISPER: Defense giant BAE Systems is increasing bonuses to keep big guns on board
BAE Systems was caught napping when CEO Charles Woodburn nearly left to join Rio Tinto two years ago.
The defense giant had to give him a hefty “golden handcuffs” bonus to keep him around.
The situation arose due to tricky succession planning with too few potential successors in the pipeline for a job that requires exceptional experience and extremely thorough vetting.
Big deal: BAE announced in its annual report that it had increased the performance-based bonus it can offer its US unit chief from 298 percent of salary to 440 percent
The fact that defense industry rewards are much higher in the US than in the UK makes it harder to attract and retain top talent.
BAE said in its annual report that it had increased the performance-related bonus it can offer the head of its US unit from 298 percent of salary to 440 percent – far higher than the deal for Britons.
However, Woodburn is not a pauper. His salary last year was a staggering £10.7million thanks to the soaring share price.
Cineworld legal action
The MoS recently got wind of lawsuits brought against Cineworld by recruiter Hays.
The High Court petition was hardly a blockbuster case, but a desperate attempt to extort a “four-figure sum” owed by the ailing cinema chain.
There were fears that Cineworld’s Chapter 11 bankruptcy proceedings in the US would hold things up. Whispers assumes that the amount has been repaid in full.
With stocks down 20 percent so far this year, it’s probably nice to get that distraction out of the way.
Individual boss sees salary package twice
Drinks are on Mark Crossley, the boss of pharmaceuticals group Indivior, who more than doubled his pay package to £8.7million last year.
Indivior has been plagued by scandal after scandal – and legal action has been taken over its alleged role in fueling the US opioid epidemic by claiming some of its drugs are less addictive than they actually are.
A possible legal dispute with Reckitt Benckiser – the consumer goods giant that gave rise to Indivior – was settled in 2021. But scroll through the list of pending actions in Indivior’s annual report and it’s clear the company’s legal team is still busy.
Additionally, most of this is unquantified – meaning there’s no telling at this time how bad the impact could be for the business.
InTheStyle boss is insulted
It sounds like a rough few weeks for InTheStyle founder Adam Frisby was made worse by a slew of offensive messages.
The ailing online fashion group recently went public and became a private company again.
However, according to a post on Instagram, leading up to this decision, there was an “online forum of ‘stock traders’ claiming to have inside knowledge that things were getting better and encouraging players – who have now lost out – to buy shares .
Frisby adds that “it’s not easy being a business owner or CEO.” Definitely not, as it sounds.
Contributor: Luke Barr
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