Halt put on payouts for executives
THE Insolvency Service has stopped huge payouts to former Carillion fatcats including shamed ex-chief executive Richard Howson.
It came amid fury that Howson was still getting a £55,000 a month salary despite quitting last July. He was due to be paid until October under a “golden goodbye” deal.
Former finance chief Zafar Khan, who left in September, was due to get £425,000 in base salary for 12 months. And interim chief executive Keith Cochrane was set to get his £750,000 salary until July, despite leaving in February.
A spokesman for the Insolvency Service said: “Any bonus payment to directors, beyond the liquidation date, have been stopped and this includes severance payments.”
Most private sector contracts held by Carillion will continue to be paid. The Insolvency Service said 90% of its private customers had indicated they wanted it to carry on as normal until new suppliers can be found, and would provide funding to keep employees on.