LONDON In the wake of controversy over its pay policies, contract-feeding giant Compass Group PLC has alerted shareholders that the compensation of top-level executives would be more closely tied to the firm’s performance in the future.
Notice of the policy change, included in the company’s annual report, followed an outcry over the reward packages that were received by former chief executive Mike Bailey, who retired last May, and chairman Sir Francis Mackay, who stepped down last June.
Bailey, who led the company through three profit warnings and a contract scandal involving the United Nations, in 2006 reportedly received a salary of about $3 million, performance-related compensation of around $1.6 million and a pension payout worth approximately $25 million upon his retirement. Mackay received a pension pot of about $29 million.