Thursday, May 03, 2007

Paid Richly For Failure

Yet another of Socialist Courier's never-ending exposure of greedy capitalist pigs with snouts in the trough .

Former Scottish Media Group chief executive Andrew Flanagan was handed a pay-off of £831,024 after being ousted last year. This comprised £649,600 in compensation for loss of office, the Scottish Media Group's annual report reveals, together with the release of awards worth £181,424 under the company's long-term incentive and performance share plans.

He earned more than £1.1 million from SMG in 2006 after working only six-and-a-half months of the year before stepping down on July 18. This included £257,000 in salary for the period, plus benefits of £50,000 comprising car, medical insurance and pension supplement. On top of that, his severance deal included a payment of £555,600, representing 12 months' salary and benefits in lieu of notice. Surprisingly perhaps, he also got a £44,000 bonus. A further £50,000 was added to Flanagan's compensation package because he agreed to waive all statutory and further legal rights against the company.

Other executive with SMG to receive a golden handshake was former television chief Donald Emslie, who left last month after eight months as acting chief executive . He was paid a total of £361,135 last year, including a £24,000 performance bonus. The total included £45,000 for the extra responsibilities he took on when Flanagan left. Emslie also received LTIPs with a cash value of £173,775. He also was paid one year's severance still to be announced .

And were those pay-offs justly deserved rewards for success ? Hardly !

New in-coming chairman Richard Findlay slammed the predecessor board's strategy as fatally flawed and badly executed, leading to "excess debt, a lack of focus, instability in the leadership, dissatisfaction among the shareholders and poor staff morale".

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