Waste managing executive wins pounds 475,000 bonus

EDWIN Falkman, chief executive of Waste Management International, received a bonus of more than pounds 475,000 last year on top of his salary of pounds 375,000, thanks to a formula relating the bonus to growth in turnover as well as growth in pre- tax profits over the preceding three years.

In 1993, the acquisitive group's 15 per cent rise in sales, to pounds 941.4m, was more than accounted for by 48 takeovers on which it spent more than pounds 300m. Like-for-like sales fell by 6 per cent.

In 1992 - the year WMX Technologies, its US parent, floated 20 per cent of Waste Management International on the London Stock Exchange - it made 24 acquisitions for a total of pounds 166m.

The flotation prospectus stated: 'The company's historical growth has resulted in large part from acquisitions.'

The bonus formula, set in 1991 by a committee composed of the company's non-executive directors, applied a multiplier based on annual average growth in turnover and pre- tax profits over three years to a proportion of Mr Falkman's 1993 base salary. In that period turnover rose by an average of 27 per cent a year, while pre-tax profits increased by 28 per cent a year.

Waste Management's turnover in the first quarter of 1994 was 16 per cent higher than the first quarter of last year at pounds 256m, with 9 per cent of the increase accounted for by five 'tuck-in' takeovers costing a total of pounds 15m during the quarter.

However, when asked by the Independent to comment on Mr Falkman's bonus arrangement, Nigel Wilson, finance director, said: 'The bonus arrangement relates to a past period, not to any future period. It has been changed and the bonus will not in future depend on turnover growth.'

The shares, 585p on flotation in April 1992, fell 13p to 543p on publication of the first-quarter results showing a 12 per cent increase in pre-tax profits to pounds 38.7m.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
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

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before