Government blocks payouts and bonuses for Carillion bosses

Posted On: 
18th January 2018

Golden goodbyes promised to Carillion bosses worth hundreds of thousands of pounds have been blocked by the Government.

Labour leader Jeremy Corbyn attacked the “wildly excessive” bonuses
Credit: 
PA Images

The Insolvency Service said no severance payments or bonuses had been paid after the construction giant went into liquidation on Monday putting thousands of jobs at risk.

Top executives were in line for huge payouts - including a £660,000 salary for ex-chief executive Richard Howson and £28,000 in benefits that he was due to receive until October, the BBC says.

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Ex-finance boss Zafar Khan was in line to receive £425,000 in base salary for 12 months after he left the firm in September.

And Keith Cochrane, the interim chief executive, was set to be paid his £750,000 salary until July despite his plans to quit next month, according to the broadcaster.

In the Commons yesterday, Labour leader Jeremy Corbyn berated Theresa May over the “wildly excessive” bonuses Carillion bosses were set to trouser.

He said the Government was negligent to hand new contracts to the firm after it issued profit warnings and urged the “costly racket” of private contracting to be stopped.

But the Prime Minister said she wanted to “provide good quality public services at best value to the taxpayers” and accused Labour of being opposed to privatisation in general.