Rail crash firm lambasted by ABI as chief executive quits

Kevin Hyde quit as the chief executive of Jarvis yesterday after overseeing a disastrous 16 months at the company during which it made a £244m loss, breached its banking covenants and saw its share price collapse.

Kevin Hyde quit as the chief executive of Jarvis yesterday after overseeing a disastrous 16 months at the company during which it made a £244m loss, breached its banking covenants and saw its share price collapse.

He said: "I believe that this is an appropriate moment for me to step down, having set in hand urgent actions necessary for recovery following the extremely difficult trading conditions we suffered in the last financial year. Now the situation is more stable, the group will benefit from fresh insights."

He will receive a 12-month pay-off of nearly £400,000 for leaving in a year when Jarvis racked up the loss. Mr Hyde joined Jarvis in 2000, becoming operations director in 2001 and taking over the top job from Paris Moayedi in May 2003. During the period, Jarvis found itself at the centre of a number of rail accidents and became overwhelmed by its £230m of debts. Earlier this year Mr Hyde had to re-negotiate an extension of the company's banking facilities, as well as announce a major asset sale, to keep the company afloat. Its construction projects have been dogged by catalogues of errors and delays, and it has lost one major schools project on account of its financial difficulties. Network Rail, the track infrastructure body, withdrew rail maintenance contracts from Jarvis and the company's shares have plummeted from 332p at that time to a low of 23p.

News of Mr Hyde's departure came as shareholders were already preparing for a revolt on performance bonuses paid to a number of former directors for the year of the Potters Bar rail crash. The Association of British Insurers (ABI), yesterday issued a "red top" warning against the payment of £470,000 to directors who were in charge at the time of the crash that killed seven people. This is the most serious warning the ABI gives to its members and many are expected to vote against the remuneration report at the annual meeting.

The bonuses were deferred from 2003 after the Potters Bar crash. But Mr Moayedi, who left in November 2003, has since been awarded £260,000 on top of his pay-off on leaving the company of about £600,000. Andrew Sutton and Tony Cunningham, who both left earlier in the year, were also paid deferred bonuses of £210,000 between them on top of severance packages. A spokeswoman for the ABI said "We have serious concerns because the company is not paying on the basis of performance." The ABI also criticised the company's internal controls, saying the quality of the information that its pay committee passed to its board was inadequate and insufficiently objective. Mr Hyde also received a £137,000 deferred bonus from 2002/03.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive + incentives + uncapped comms: SThree:...

Recruitment Genius: Telesales Executive - OTE £25,000

£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...

Ashdown Group: Graduate Developer (Trainee) - City, London

£25000 per annum + benefits: Ashdown Group: A large financial services company...

Day In a Page

The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory
Ashes 2015: Alastair Cook not the only one to be caught in The Oval mindwarp

Cook not the only one to be caught in The Oval mindwarp

Aussie skipper Michael Clarke was lured into believing that what we witnessed at Edgbaston and Trent Bridge would continue in London, says Kevin Garside
Can Rafael Benitez get the best out of Gareth Bale at Real Madrid?

Can Benitez get the best out of Bale?

Back at the club he watched as a boy, the pressure is on Benitez to find a winning blend from Real's multiple talents. As La Liga begins, Pete Jenson asks if it will be enough to stop Barcelona
Athletics World Championships 2015: Beijing witnesses new stage in the Jessica Ennis-Hill and Katarina Johnson-Thompson heptathlon rivalry

Beijing witnesses new stage in the Jess and Kat rivalry

The last time the two British heptathletes competed, Ennis-Hill was on the way to Olympic gold and Johnson-Thompson was just a promising teenager. But a lot has happened in the following three years
Jeremy Corbyn: Joining a shrewd operator desperate for power as he visits the North East

Jeremy Corbyn interview: A shrewd operator desperate for power

His radical anti-austerity agenda has caught the imagination of the left and politically disaffected and set a staid Labour leadership election alight
Isis executes Palmyra antiquities chief: Defender of ancient city's past was killed for protecting its future

Isis executes Palmyra antiquities chief

Robert Fisk on the defender of the ancient city's past who was killed for protecting its future