Wickes director to repay part of bonus
Monday 14 October 1996
Repayment of the profit-related bonuses would be regarded in the City as an acknowledgement that they share some of the responsibility for the pounds 50m overstatement of profits that put the group into a crisis.
Wickes booked discounts from suppliers as profits before the goods were sold, over a period of four years or more, so the bonuses were based on profit levels that proved to be an illusion.
Mr Sweetbaum, who is not thought to have agreed yet on a repayment but is still in talks, was paid pounds 890,000 in profit-related bonuses last year.
Mr Llewellyn, who is now finance director of Caradon, was paid pounds 609,000 and another director, Michael Corner, who is likely to leave Wickes soon, was paid the same.
It is believed Mr Corner is also considering a repayment but it is not clear whether he will follow Mr Llewellyn's example.
This week the company is expected to publish a long-awaited circular giving its account of what happened during the years in which profits were overstated.
One issue in the negotiations over a possible repayment of bonuses is whether any of the non-executive directors of Wickes will be made to take some public share of responsibility for what went wrong.
The intention of the circular is to say who was responsible for the profits overstatement and how it happened, but there have been delays in getting the document to the point of signature by the board because of legal arguments over the wording.
It is thought that the circular will say the executive directors bore overall responsibility for what went wrong, not that they were directly implicated.
The target date for publication is believed to be Wednesday but Wickes has missed deadlines before.
The shares were suspended when the overstatement of profits came to light and are unlikely to be relisted until late this year or early next year, when the company will also need to announce a rights issue to replace some of the huge hole discovered in its balance sheet.
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 2 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Nepal earthquake: Rescuers forced to dig with their bare hands in search for survivors as images show damage to historic buildings
Ed Miliband and Boris Johnson in angry clash live on BBC's Andrew Marr Show
Bali Nine executions: British grandmother on death row in Indonesia Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...