Wednesday, 17 January 2018

Collapsed construction firm Carillion directors' bonus payments stopped amid anger over firm's collapse

Bosses at collapsed construction firm Carillion have had their bonus payments halted amid growing anger at bumper payouts.
The Insolvency Service revealed payments had stopped when the major public service provider plunged into liquidation on Monday with debts of £1.3bn and a £600m pensions deficit.

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."

The news came after Labour leader Jeremy Corbyn used Prime Minister's Questions to tackle Theresa May over "wildly excessive bonuses" given to Carillion bosses.

Carillion's former chief executive Richard Howson was handed £1.5m in salary, bonuses and pension payments as part of his exit deal in 2016, with the company agreeing to carry on paying him a £600,000 salary and £28,000 benefits until October 2018.

Other former bosses had also been handed severance deals in which their salaries were continuing to be paid beyond their exit date.

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