Guardian News and Media/London
The boss of G4S, the company that bungled the security of last year’s Olympics, could receive a pay package of £4.5mn next year after winning the support of the company’s board to remain in the top role.
Nick Buckles, who was forced to appear before MPs to admit the operation for the 2012 Games was a “humiliating shambles”, could net a potential £4.5mn in 2013 if he hits all performance targets - almost £500,000 more than his maximum potential reward in the past.
The annual report of the world’s largest private security company shows Buckles’ £830,000 salary was bolstered by benefits and payments in lieu of pensions to £1.18mn in 2012, up from £1mn the year earlier.
However, the annual report shows that the figure provided for Buckles’ pay in 2011 only includes six months’ pay in lieu of pension, which will depress the comparison with 2012 when the full 12 months of pension is included.
In March 2012 Buckles was also handed 118,112 shares worth £325,000 from long-term incentive plans (Ltip) issued to him three years ago.
They could become more generous to him in the future as the company plans to raise his potential entitlement to 2.5 times his salary, from two times now, to “ensure that the directors continue to be incentivised and motivated”.
Directors’ pay is usually based on three main measures - salary, annual bonus and Ltip - and Buckles did not receive an annual bonus in 2012 while his salary has been frozen for the second consecutive year.
A year ago, Buckles was forced to waive a bonus of around £750,000 after the company incurred £55mn in fees following an aborted attempt to take control of rival ISS.
