TOP BOSSES at IT outsourcing group Logica have turned down bonuses worth around £1m for the year after the firm’s profits fell and it was forced to announce a costly restructuring.
No bonuses or new share awards were granted to chief executive Andy Green and outgoing Benelux chief Seamus Keating to acknowledge the “impact of the restructuring announcement on people and shareholders”.
Green admitted in Logica’s annual report that “2011 was more difficult than we expected” but said the firm has taken “decisive action” to counteract the difficult market.
The FTSE 250-listed firm’s earnings per share dipped eight per cent during the year, as net debt rose and margins fell. Logica shares dropped 30 per cent last year.
Logica announced a restructuring in December, which cost the firm £80.4m and is set to reduce headcount by around three per cent, or 1,300 jobs.
Green’s overall pay fell from £1.2m to £767,000 last year. He also took £221,000 in pension contributions as cash.
The chief executive’s share holdings rose from 1.87m shares to 2.46m. But he allowed some awards from 2008 to lapse, costing him around £500,000 worth of stock. Seamus Keating received a £471,000 pay package, down from £735,000 a year ago.
He also lifted his share holdings by 30 per cent to 718,000 as long-term awards vested during the year.
• The chief executive of G4S, Nick Buckles, also gave up his bonus last year after his firm failed to clinch a £5bn takeover of ISS. Buckles’ pay fell from £1.4m to £858,000, the G4S annual report said.