Showing posts with label Andrew Flanagan. Show all posts
Showing posts with label Andrew Flanagan. Show all posts

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".