Senior executives at the world’s leading catering group, Compass, are reported to be pocketing millions of pounds in retirement pay despite the company’s employee fund struggling with a £532m deficit.
Compass has experienced a difficult year with regular profit warnings and a fraud scandal, but chief executive Mike Bailey, who recently announced plans to step down, has reportedly received an attractive pay package. Along with a £1.4m pension boost, Bailey was awarded £1m in shares and options, bringing his retirement fortune to £15m, an article in the Guardian revealed.
Chairman Francis Mackay, also due to leave the company this summer, was awarded £730,000 of shares and a £1m pension bonus in addition to his salary of over half a million, despite admitting the company has experienced one of its most difficult years.
Compass continues to be investigated by the UN over contract procurement methods in West Africa, the Guardian said. So far three executives have been dismissed over the issue.
The company’s troubles have seen pre-tax profits down from £370m to £171m, but Compass argues that the large payouts are in line with employment contracts.
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