Two Compass bosses turn down bonuses

03 February 2005 by
Two Compass bosses turn down bonuses

Two Compass bosses - chairman Sir Francis Mackay and chief executive Mike Bailey - have both declined to take their bonuses following the company's poor performance in 2004.

The contract catering giant warned in September that its profits would be £30m below market expectations.

However, it was revealed in the company's final accounts, released last week, that the directors were still entitled to receive 25% of their bonuses for hitting one of four performance-related targets.

Despite this, both Mackay and Bailey turned down the extra cash, which cut Mackay's remuneration from £1.26m in 2003 to £546,000. Similarly, Bailey's package was slashed from £2.62m to £1m.

A company spokesman said that neither boss "felt it appropriate" to take the payments, despite the fact that Compass achieved its organic growth target of 7% in the year.

However, operating profits at the company fell from £797m in 2003 to £775m last year, and the company's shares have collapsed from 385p a year ago to just 247.5p on Monday.

The other four directors all claimed their bonuses, worth a total of £881,000. The highest paid director was Alan Dupuis, who received a bonus of £623,000 for hitting his targets for growth in Asia, reflecting Compass's growth in China in particular, taking his total package to £1.1m.

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.


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