Compass chiefs' pension pots anger union

12 January 2006
Compass chiefs' pension pots anger union

Compass bosses Mike Bailey and Sir Francis Mackay have been accused of "dreadful timing" by the GMB union following the announcement of the company's 2005 pension payouts.

Chief executive Bailey added £1.4m to his pension fund last year, taking his overall pot to £15.1m. Mackay, the outgoing chairman, increased his annual contribution by 11%, leaving him with a total fund of £16.1m.

A GMB spokesman accused the pair of "feathering their own nests" while the group's overall pension deficit stood at £532m. "We believe the chancellor should use his powers to cut these kinds of excessive packages down to size," he added.

Dresdner Kleinwort Wasserstein analyst Karl Green said that the size of the payouts "had raised eyebrows" given Compass's poor performance over the past 12 months.

But Compass denied the payments were excessive. A spokeswoman said: "The payments are not at the discretion of the remuneration committee. The values are solely based on actuarial calculations."

The company also denied speculation that it was planning to close its final salary pension scheme to existing members. The spokeswoman said: "We continue to work with trustees and are keeping the situation under review as it evolves

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