Failed chief at Cob­ham handed £1m

Daily Mail - - City & Finance -

THE for­mer boss of de­fence firm Cob­ham will walk away with a pay­off worth nearly £1m de­spite his dis­as­trous ten­ure at the en­gi­neer.

Bob Mur­phy will get one year’s salary and a lump sum af­ter step­ping down in De­cem­ber fol­low­ing a string of profit warn­ings and a rights is­sue.

His con­tract en­ti­tles him to a pay­off of a year’s ba­sic pay – around £750,000 – plus about £200,000 to move back to his na­tive US with his fam­ily.

But the 59-year-old for­mer chief ex­ec­u­tive and his ex-chief fi­nan­cial of­fi­cer Si­mon Ni­cholls will not be get­ting any bonuses af­ter the pay com­mit­tee de­cided not to re­ward them for a ‘very dis­ap­point­ing and chal­leng­ing year’.

The firm has strug­gled since an ac­count­ing scan­dal, a tough market, over­priced pur­chase of a US ri­val and prob­lems with a con­tract for Boe­ing.

Last month, Mur­phy’s re­place­ment David Lock­wood is­sued its fifth profit warn­ing in less than two years and then a se­cond £500m rights is­sue.

Shares yes­ter­day rose 1.7pc, or 2.2p, to 130.4p.

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