Melrose feels the heat over payouts to top executives. Turnaround firm Melrose Industries (MRO) is under intense pressure to rein in its lucrative long-term bonus scheme, which paid out £167m to its four bosses last time round. The company, whose hard-fought £8.1bn hostile takeover of GKN last year propelled it into the blue-chip index, has one of the most generous incentive schemes of UK plcs, beaten only by housebuilder Persimmon’s £100m payday for its chief executive. Melrose executive directors Simon Peckham, Chris Miller, David Roper and Geoff Martin each received £42m last year when a multiyear incentive running from 2012 to 2017 crystallised.
US security fears over Inmarsat (ISAT) buyout. Security and technology watchdogs are gearing up for months of transatlantic scrutiny of the planned takeover of Inmarsat by buyout giants Apax and Warburg Pincus, amid heightened sensitivities over critical communications. Inmarsat’s major customers include the US Navy and British special forces, bringing close analysis of prospective new owners. The deal will be reviewed by a powerful and secretive branch of the American government known as the Committee on Foreign Investment in the United States (CFIUS), which derailed Broadcom’s $117bn (£90bn) hostile offer for Qualcomm last year over concerns about Chinese involvement.
Staff anger over ‘doughnut’ bonuses at Standard Life. Standard Life Aberdeen (SLA) is facing an employee revolt after the struggling fund giant slashed bonuses to many staff and handed some a feared zero – “doughnut” – payout. It is understood that bonuses across the company have plummeted this year after it suffered more than £40bn worth of outflows in 2018. Some staff said their bonus had been halved, while others fared even worse with a “doughnut”. “People are not happy,” one insider said. “Some wanted as much as previous years, but that was never going to happen.” One senior source, who asked not to be named, said he was preparing for a pay cut this year but was shocked that the final figure was so low.
AA (AA.) is expected to unveil a dramatic slump in profits this week as it continues to battle a slide in members. Analysts estimate the roadside recovery business made £77 m in pre-tax profits in the year to January, compared with £141 m the year before. The company told investors last month that while it had won a series of major contracts with business customers, personal memberships fell 2% in the year and would be stagnant in 2019. Boss Simon Breakwell has been trying to turn around the AA since 2017, investing in roadside patrols, its breakdown app and its insurance arm.
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