Share Search
Visit the Share Search
You are here:
Capita cuts directors' bonuses during crisis
21st Apr 2020 14:52
(Sharecast News) - Capita has taken further measures to cut the pay of its senior team during the Covid-19 emergency by withdrawing and reducing potential bonuses for 2020.
The FTSE 250 company said it had withdrawn the annual incentive plan from Chief Executive Jon Lewis, Chief Financial Officer Patrick Butcher, the executive committee and other senior managers. It has also made big reductions in Lewis and Butcher's long-term incentive plan (LTIP) awards.
Under the LTIP, Capita awarded Lewis and Butcher 70% fewer shares than they would otherwise have received to take account of the company's falling share price. LTIP awards for senior management have also been cut significantly, the outsourcer said.
The reductions follow Capita's earlier decision to cut directors' pay by 25% from 1 April and to reduce pay for executive committee members and other highly paid employees. Many companies are reducing pay for their top people to conserve cash, respond to pressure and acknowledge government assistance to businesses during the Covid-19 crisis.
"Capita remains focused on taking appropriate steps that will look to protect the interests of all its key stakeholders and best ensure the strength of Capita's business in the long term," the company said. "We have withdrawn the 2020 annual incentive plan ... In light of Capita's recent share price performance, the 2020 LTIP award levels for Jon Lewis and Patrick Butcher are being reduced significantly."
The FTSE 250 company said it had withdrawn the annual incentive plan from Chief Executive Jon Lewis, Chief Financial Officer Patrick Butcher, the executive committee and other senior managers. It has also made big reductions in Lewis and Butcher's long-term incentive plan (LTIP) awards.
Under the LTIP, Capita awarded Lewis and Butcher 70% fewer shares than they would otherwise have received to take account of the company's falling share price. LTIP awards for senior management have also been cut significantly, the outsourcer said.
The reductions follow Capita's earlier decision to cut directors' pay by 25% from 1 April and to reduce pay for executive committee members and other highly paid employees. Many companies are reducing pay for their top people to conserve cash, respond to pressure and acknowledge government assistance to businesses during the Covid-19 crisis.
"Capita remains focused on taking appropriate steps that will look to protect the interests of all its key stakeholders and best ensure the strength of Capita's business in the long term," the company said. "We have withdrawn the 2020 annual incentive plan ... In light of Capita's recent share price performance, the 2020 LTIP award levels for Jon Lewis and Patrick Butcher are being reduced significantly."