Ex-Marconi director to keep £280,000 bonus

The troubled telecoms equipment maker Marconi has confirmed that its former finance director Steve Hare will get the balance of a controversial £562,500 bonus even though the company's financial restructuring, which will trigger that payout, has been delayed.

Mr Hare, who stepped down from the position earlier this month but who officially leaves the business on 31 January, had already received half that bonus.

The balance, of £281,250, was due to be paid in equal tranches with the first due on completion of the company's financial restructuring and the second due three months after that.

Marconi had ensured Mr Hare would receive the cash by allowing him to remain as an employee until 31 January – the date by which it expected to have its restructuring signed off.

But the company admitted last week that it would miss the 31 January deadline – a move that should have precluded Mr Hare from getting the balance of his bonus since he would no longer be an employee.

A Marconi spokesman said yesterday, however, that Mr Hare would still get the bonus. "It was part of the settlement agreed with Steve," he said.

Mr Hare, who was employed on a 12-month contract, is also entitled to a year's notice – or £375,000. Since he is still working at the company and since the sum is backdated to his mid-November departure, the notice payout is more like nine-and-a-half months' worth.