CITY WHISPERS: BAE Systems ramps up bonuses to keep big guns
CITY WHISPERS: Defense giant BAE Systems is increasing bonuses to keep big guns on board
BAE Systems was caught napping when boss Charles Woodburn nearly left to join Rio Tinto two years ago.
The defense giant had to give him a hefty ‘golden handcuff’ bonus to keep him around.
The situation has arisen from tricky succession planning, with too few potential replacements in the pipeline for a job that requires exceptional experience and ultra-in-depth vetting.
Big deal: BAE revealed in its annual report that it has increased the performance-related bonus it can offer its US division boss from 298 percent of salary to 440 percent
Matters are not helped by the fact that pay in the defense industry in the US is much higher than in the UK, making it more difficult to attract and retain top talent.
BAE revealed in its annual report that it has increased the performance-related bonus it can offer the boss of its US department from 298 percent of salary to 440 percent – much higher than the British deal.
However, Woodburn is hardly a pauper. His pay last year was a whopping £10.7 million thanks to the soaring share price.
Cineworld legal action
The MoS recently got wind of legal action against Cineworld by the recruiter Hays.
The petition filed with the Supreme Court was hardly a blockbuster lawsuit, but instead an exasperated attempt to enforce a “four-figure sum” owed by the struggling movie theater chain.
There were fears that Cineworld’s bankruptcy lawsuit in the US, Chapter 11, was stalling business. Whispers understands that the amount has been fully refunded.
With stocks down 20 percent so far this year, it’s probably nice to get that distraction out of the way.
Individual boss sees pay package double
Drinks are on Mark Crossley, the boss of pharmaceutical group Indivior, who saw his pay package more than double to £8.7 million last year.
Indivior has been hit with scandal after scandal – and legal action for its alleged role in fueling the US opioid epidemic by claiming that some of its drugs were less addictive than they were.
A potential legal battle with Reckitt Benckiser – the consumer goods giant that spawned 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 department is still at it.
Plus, most of it isn’t quantified – meaning there’s no telling at this stage how bad the impact could be for the business.
InTheStyle boss gets scolded
It sounds like a rough few weeks for InTheStyle founder Adam Frisby have been compounded by a slew of abusive messages.
The ailing online fashion group recently left the stock exchange and became a private company again.
But according to an Instagram post, leading up to this decision, there was an “online forum of ‘stock traders’ who claimed to have inside information that things would get better, encouraging gamblers — who have now lost out — to buy stocks.
Frisby adds that “being a business owner or CEO isn’t damn easy.” Absolutely not, it sounds like.
Contributor: Luke Barr