Thursday, 29 May 2008

Reward for failure

I am one of the greatest supporters of 'performance-related pay'. Indeed, I have chaired several Remuneration Committees designing LTIPs and the like. But, if there is one thing that gets my goat, it is rewarding failure.

So when I read of the multi-million reward packages for Ben Verwaayen (outgoing CEO) and Ian Livingston (incoming CEO) at BT - See The Times New BT boss offered £7m to hit targets - I wasn't too concerned. What really upset me was the £376,000 payment which continues to be made to (Sir) Peter Bonfield six years after he left BT in the most perilous state after his disastrous reign as CEO.

All I now need to get my blood pressure even higher is to learn that Bonfield is still being paid by Fujitsu for his similarly "disappointing" period as CEO of ICL.

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