Marconi's Mayo picked up £2.3m

Liz Vaughan-Adams
Sunday 29 December 2013 03:09

The troubled telecoms equipment maker Marconi paid John Mayo, its former deputy chief executive, a £2.3m pay packet for the three months he worked at the company last year.

Mr Mayo, who was ousted from Marconi on 6 July last year, received a salary of £162,000 for that period as well as £443,000 of other benefits, boosting his remuneration to £605,000.

But the company's Annual Report and Accounts also revealed Mr Mayo received £644,000 in pension benefits in addition to an extra £428,000 payment to meet pension commitments after his departure and a £600,000 termination payment.

Lord Simpson of Dunkeld, the company's former chief executive, was paid £355,000 plus £152,000 of other benefits, boosting his total pay to £507,000.

Lord Simpson, who left in September, was also awarded a £235,000 pension contribution plus a £300,0000 severance payment.

The awards came as Marconi, which is still battling to seal a key restructuring deal, confirmed its shares, which trade in the form of American Depositary Receipts in the US, would be delisted from Nasdaq on 3 July.

The stock, which is being delisted after failing to meet the minimum price required to trade on the US market, will then trade on the US's 'over the counter' market.

The company's current chief executive, Mike Parton, was paid £681,000 for the year including a £400,000 salary. He also received a £177,000 pension contribution.

Marconi said earlier this week that its restructuring was likely to involve a debt-for-equity swap for a "significant" proportion of its total £4.3bn of debt.

It said then that it continued to make "good progress" in the restructuring talks that are currently underway with its banks and bondholders.

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