Labour in Blackpool: Directors enjoy rich pickings from privatisation
Monday 03 October 1994
Fifteen senior executives made pre-tax returns of more than pounds 100,000 by selling their privileged equity stakes, according to the union-funded Labour Research Department. At a time when the businesses are announcing large scale redundancies and keeping most employees' increases below 3 per cent, directors at 17 of 29 utility companies made hefty returns through the share perks.
The biggest profit traced by the LRD was made by James Smith, chairman of Eastern Electricity, who took up options on 121,107 shares and sold them to make a return of pounds 466,867 to add to his pounds 242,000 salary.
Under the share option system, directors are allowed to buy equity at a slight discount to market price and sell them in three to five years. If the share price has dropped they can let the option lapse and lose nothing. The LRD said Michael Heseltine, President of the Board of Trade, was 'wasting his time exhorting shareholders to vote against the more obscene pay and compensation packages'. The main shareholders were City institutions, 'profiting handsomely' from dividend payments.
The second largest profit on individual share options was made by John Seed, chief executive of South Western Electricity, who received pounds 445,137 on top of his pounds 213,000 salary. Board members John Sellers, John Bonner and Malcolm Carson made profits of pounds 169,894, pounds 150,530 and pounds 149,634.
Labour research Volume 83 Number 10; LRD Publications, 78 Blackfriars Road, London SE1 8HF; Price pounds 2.40.
Board creates magnetic field to achieve lift
Singer says the track was 'force-fed down people's throats'
Endangered species spotted in a creek in the Qinling mountains
Company says data is only collected under 'temporary' identities that are discarded every 15 minutes
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
George Lucas criticises the major Hollywood film studios
Some experiencing postnatal depression don't realise there is a problem. What can be done?
- 2 Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Negotiable: Randstad Education Preston: Primary Teacher Jobs in BlackpoolWe ar...
Competitive & Flexible : Randstad Education Cambridge: The JobRandstad Educati...
£60 - £70 per day: Randstad Education Preston: Successful candidate should hav...
Negotiable: Randstad Education Preston: Early Years and Foundation Stage Prima...