Carillion finance boss ‘ditched’ £800k in shares, say MPs
A FORMER Carillion boss “dumped” shares worth nearly £800,000 in the months running up to the firm’s collapse, MPs reveal today.
Ex-financial director Richard Adam got rid of the last of his stake in the outsourcing giant “at the first possible moment”, according to the Commons Work and Pensions Committee.
Mr Adam retired on December 31, 2016 and on March 1, 2017 sold his entire existing shareholding for £534,000. Then on May 8 he flogged long-term incentive plan awards for £242,000. In total, he sold shares – which are now worthless – for £776,000.
Committee chairman Frank Field said: “Mr Adam presided over Carillion’s finances for a decade. He, more than anyone else, ought to know the merits of Carillion shares.
“His assessment? Dumping his shares because he is – with his own money at least – ‘risk averse’. What conclusions are we to draw?”
Fresh information was published following new letters to the Work and Pensions and Business Select Committees, which are running a joint inquiry into the company’s demise.
Giving evidence to MPs earlier this month, Mr Adam said he believed the company was “healthy” during his tenure and that his shares were disposed of “in accordance with the procedures put in place for everybody.”
MPs also revealed Mr Adam’s successor Zafar Khan said he had been surprised the board was “spooked” to hear of the firm’s shaky finances.