Yarpy
7th Mar 2004, 16:15
Makes you feel really sick.
From the Observer:
Mytravel directors get massive payouts
Heather Connon
Sunday March 7, 2004
The Observer
Departing directors of Mytravel, the struggling tour operator, were paid up to three times their contractual entitlement when they left, according to an analysis produced for The Observer. Mytravel was widely criticised when its accounts revealed it had paid £4.5 million compensation to five directors last year, despite racking up £911m losses and seeing its share price shrink to under 20p from a high of 544p.
The company said the payouts were in line with service contracts. But an analysis by Manifest, the proxy voting service, found that the £1,132,000 paid to Michael Lee was almost three times his £380,000 salary. Tim Byrne, ousted as chief executive in October 2002, got £1,247,000, equal to 28 months' salary. Both directors were on two-year contracts, which should have limited the total payout.
Kazia Kantor, who quit as finance director last August 2 after nine months in the job, was paid £606,000, equal to almost 23 months of her base salary, despite being on a 12-month contract. Her predecessor, David Jardine, got £844,000 after less than three years, equal to 27 months' salary. He was on a 24-month contract. Mytravel said the payments included entitlement to benefits.
'A prime case of "rewards for failure" if ever there was one,' said Manifest's managing director, Sarah Wilson.
From the Observer:
Mytravel directors get massive payouts
Heather Connon
Sunday March 7, 2004
The Observer
Departing directors of Mytravel, the struggling tour operator, were paid up to three times their contractual entitlement when they left, according to an analysis produced for The Observer. Mytravel was widely criticised when its accounts revealed it had paid £4.5 million compensation to five directors last year, despite racking up £911m losses and seeing its share price shrink to under 20p from a high of 544p.
The company said the payouts were in line with service contracts. But an analysis by Manifest, the proxy voting service, found that the £1,132,000 paid to Michael Lee was almost three times his £380,000 salary. Tim Byrne, ousted as chief executive in October 2002, got £1,247,000, equal to 28 months' salary. Both directors were on two-year contracts, which should have limited the total payout.
Kazia Kantor, who quit as finance director last August 2 after nine months in the job, was paid £606,000, equal to almost 23 months of her base salary, despite being on a 12-month contract. Her predecessor, David Jardine, got £844,000 after less than three years, equal to 27 months' salary. He was on a 24-month contract. Mytravel said the payments included entitlement to benefits.
'A prime case of "rewards for failure" if ever there was one,' said Manifest's managing director, Sarah Wilson.