Lord Young pockets pounds 2.4m pay-off

JOHN EISENHAMMER

Financial Editor

Lord Young is to pocket pounds 2.4m under the terms of a pay-off agreement announced yesterday with Cable & Wireless, where he was removed as chairman last November during a dramatic boardroom bust-up.

The bulk of the package comes from a profit on share options worth pounds 2.2m. The balance will be made up of three months' salary, worth pounds 119,000, a share of the directors' bonus scheme, and pension entitlements.

Lord Young of Graffham was dismissed, along with C&W's chief executive, James Ross, after an outbreak of hostilities that led the board to conclude that both top men had to go.

It was after this clear-out that BT made a second takeover approach to C&W, it was confirmed by both companies yesterday. But C&W said the exploratory talks broke down, and there are no current negotiations.

Brian Smith, who took over as chairman of C&W, said of his predecessor's pay-off: "This settlement is fair to everyone concerned: the company, Lord Young, our employees and shareholders. Lord Young will gain from his share options in line with the doubling of the share price during his time as chairman of the company."

C&W said it would not make any payments to enhance Lord Young's existing contractual pension rights. His salary in 1995-96 was pounds 475,000. The company had previously agreed a pounds 1.2m pay-off package with Mr Ross, who had been on a pounds 400,000 salary.

Lord Young did not have an employment contract, at his own request. James Ross was on a one-year rolling contract.

Rod Olsen has taken over as acting chief executive, but the company is still looking for a permanent replacement. The boardroom bust-up reflected strong differences over the strategy of running C&W as a global federation of disparate companies, the biggest of which is the controlling stake in Hongkong Telecom.

Adding to the tension was the mixed performance of C&W's Mercury subsidiary, which was set up to compete with BT in the UK, but with disappointing results.

Lord Young, 64, served in several ministerial posts during Margaret Thatcher's years as Prime Minister, first as Secretary of State for Employment, and then at the Department of Trade and Industry until 1989. He joined C&W as chairman in October 1990.

Market Report, page 20

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee