Monday, 15 January 2018

Richard Howson took the money & shares!

THIS morning someone curious had got onto the Northern Voice Blog by googling 'richard howson + panama papers'.

Who is Sir Richard Howson?

Richard Howson worked at Balfour Beatty, Bovis and Tarmac before becoming Operations Director for the Carillion Building business in 1999. In March 2004 he was promoted to National Construction Director on the Carillion Building senior management team, before becoming Managing Director of Carillion Rail in 2006, and then Managing Director of Carillion’s Middle East and North African operations in 2007.[2]  Howson was appointed chief operating officer of Carillion in September 2010 and CEO in December 2011.[3] He stepped down in July 2017, following a profits warning that led to the company's shares falling almost 40%, with Keith Cochrane temporarily taking on the role.[4]
Howson was asked to return his bonus, following the announcement of a £845 million impairment charge in its construction services division under his leadership at Carillion.[5] On 29 September 2017, it was revealed that Carillion's losses for the six months ended 30 June 2017 totaled £1.15 billion, following a further write-down of £200 million, this time in its support services division.[6]

The company Carillion is under formal investigation by the Financial Conduct Authority for the term Howson was CEO.[7]

Last September, The Times reported on demands from leadiing shareholders that Carillion should be clawing back bonuses paid to former directors of the stricken construction firm as it tried to shore up its finances.

The aim then was to recoup millions of pounds in shares and cash paid to ex-chief executive Richard Howson and former finance chief Richard Adam.

Carillion has been suffering since admitting in July 2017 that it had problems with contracts in the UK, the Middle East and Canada that would cost it £845m in writedowns.   It then fell out of the FTSE 250 index of mid-cap companies.

Carillion’s downfall, at that time had wiped 84% from its shares in a year, has left investors nursing heavy losses. Its shares closed at 42.75p, valuing the £5.2bn turnover company at just £184m.

Long-serving Sir Richard Howson and Adam last year made £591,000 and £418,000 respectively in bonuses and long-term incentives.

Richard Adam quit in January 2017, after serving in the role of finance chief since 2007, he was rewarded with a  2016 bonus of £139,932 which was paid entirely in cash, against company protocol. However, Howson’s £245,224 bonus was paid half in shares.

At the time Howson earned bonuses and long-term incentives worth £439,000 in 2015 and £246,000 in 2014, while Adam made £332,000 in 2015 and £203,000 in 2014.

Not bad fir someone who saw the ship go down on his watch.

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