Bonus backtracking

FOLLOWING the revelation in narrowboatworld some three weeks ago that BW had withheld details of bonus payments made to executive directors in its 2009/10 annual report, comes news that its chief executive, Robin Evans, will not be paid his award, writes Allan Richards.

Backtracking

British Waterways is keen to stress that the award of £14,652, made by its remuneration committee to Robin Evans (Chief Executive) has not been paid. Awards of over £10,000 made to Nigel Johnson (Corporate Services Director) and Philip Ridal (Finance Director), have been slightly reduced. However, it is understood awards of less than £10,000 made to all other directors, including one no longer employed by BW, remain unchanged.

BW have also made it clear that directors (and other staff) will not receive bonus payment for this company year (2010/11). However, the bonus system has not been scrapped, so the opportunity still exists for bonus payments of up to 30% (Chief Executive 40%) in future years.

It would be nice to say that Every little helps, and the £15,000 will be used to maintain our system. Sadly, this will not happen. BW have increased the basic salary of two executive directors by more than this amount.

PR disaster

When you find a chief executive being awarded a bonus for removing redundant phone lines rather than being sacked for allowing £50,000 a year to be wasted it suggests that BW's remuneration committee are divorced from reality. It comes as no surprise, therefore, to find that he was also rewarded for not implementing an IT project thus saving £29,000. Think about it

Making bonus payments, albeit small in terms of what could be paid, shows a complete disregard for government's call for pay restraint in the public sector. It also makes a mockery of BW's intention to move to the third sector where salaries are an order of magnitude less.

Trying to hide those payments by not declaring them in the annual report just makes matters worse as does half closing the stable door after the horse has bolted,  by tinkering with them when the deception was revealed.

In every respect this is a complete public relations disaster!