The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Compass chiefs' pension pots anger union

12 January 2006

Compass bosses Mike Bailey and Sir Francis Mackay have been accused of "dreadful timing" by the GMB union following the announcement of the company's 2005 pension payouts.

Chief executive Bailey added £1.4m to his pension fund last year, taking his overall pot to £15.1m. Mackay, the outgoing chairman, increased his annual contribution by 11%, leaving him with a total fund of £16.1m.

A GMB spokesman accused the pair of "feathering their own nests" while the group's overall pension deficit stood at £532m. "We believe the chancellor should use his powers to cut these kinds of excessive packages down to size," he added.

Dresdner Kleinwort Wasserstein analyst Karl Green said that the size of the payouts "had raised eyebrows" given Compass's poor performance over the past 12 months.

But Compass denied the payments were excessive. A spokeswoman said: "The payments are not at the discretion of the remuneration committee. The values are solely based on actuarial calculations."

The company also denied speculation that it was planning to close its final salary pension scheme to existing members. The spokeswoman said: "We continue to work with trustees and are keeping the situation under review as it evolves

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking