Waste managing executive wins pounds 475,000 bonus
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.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
Breaking: Soldier killed in Woolwich machete attack named as Drummer Lee Rigby
'Sickening, deluded and unforgivable': Horrific attack brings terror to London’s streets
World news in pictures
Ingrid Loyau-Kennett, the mother-of-two hailed as a hero for confronting Woolwich attackers, thought: 'better me than a child'
- 1 Breaking: Soldier killed in Woolwich machete attack named as Drummer Lee Rigby
- 2 'Sickening, deluded and unforgivable': Horrific attack brings terror to London’s streets
- 4 Woolwich murder: They killed, then they performed - these men should be starved of our attention
- 5 Woolwich attack: The EDL will seek to exploit this evil crime for their own evil ends
BMF is the UK’s biggest and best loved outdoor fitness classes
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.