Fat cats in line for £285m bonanza
MELROSE bosses could split £285million if its takeover of GKN is a success.
Thanks to a bonus scheme agreed last year, directors Christopher Miller, David Roper, Simon Peckham and Geoffrey Martin will be awarded shares based on how much Melrose is worth as a company.
Analysts believe they are aiming to add £5.6billion to the value of the investment firm through the acquisition of GKN, putting the quartet in line for £285million.
Another 20 senior managers would split £135million more when the scheme pays out in 2022. The four directors split £160million in May last year at the end of the last five-year scheme. This is on top of generous pay packages, worth £2.9million in 2016.
Melrose was set up 15 years ago by executive chairman Mr Miller, 66. It claims to be focused on the turnarounds of engineering firms, but this is dismissed by critics as disposing of the companies best assets.
Stefan Stern of the High Pay Centre said: ‘We want real engineering, not financial engineering. What GKN needs is ownership that’s committed to long-term success and doesn’t see it as something to be chopped up and sold off, releasing big cash prizes for chief executives.’ The directors own more than £165million of stock in the company.
Mr Roper, 67, serves as executive vice chairman, Mr Peckham, 55, is chief executive and Mr Martin, 50, is head of finance.
A Melrose spokesman said that to get the £285million, they would need to double GKN’s value, adding: ‘The Melrose management stand to make nothing if the value of GKN doesn’t increase by some £800million in the next two years.’
She said £80million of the £160million bonus went to the taxman, with the four bosses keeping £20million of shares each.