Top Capita execs have today had bonuses worth £10m dangled in front of them – but only if they can dig the outsourcing giant out of its current hole.
Almost 5.5m nil-paid shares have been placed into a 2017 long-term incentive plan (LTIP).
Capita's share price has plummeted in over the last three years, recently hitting 20-year lows. If the firm's market value were to return to July 2015 levels, Capita's top brass could share a pot of around £71.5m under the share incentive scheme.
Last week Capita, which employs 73,000 and whose contracts include providing critical support to HM Revenue & Customs and operating London’s congestion charge, unveiled a well-signposted £701m rights issue. The firm also revealed £851m of contract write-downs as annual losses widened to £513m.
Markets, however, were buoyed by new boss Jonathan Lewis' plans to slim-down operations.
The vesting of the bonuses to 12 executives will be subject to "the satisfaction of a number of performance conditions related to the execution of the new strategy and delivery of stated targets measured over a three-year period", Capita said in a regulatory announcement today.
The targets Capita will have to hit for execs to receive the rewards will be set following consultation with shareholders. City sources said the process Capita was undertaking was in line with standard industry practices.
Precise details will be disclosed to shareholders as soon as they determined. However, they will not be made more widely available until 2019 as part of the publication of Capita's financial statements for the year to December 2018.