Fury as Barratt directors receive massive bonuses

Trusted article source icon
Thursday, October 14, 2010
Profile image for This is Leicestershire

This is Leicestershire

A £1.5 million bonus has been paid to bosses at a house builder – while staff saw their wages frozen for a second year.

Barratt made the huge payout, which saw earnings of senior directors soar by 81 per cent, after reporting huge annual losses.

Two of the group's 11 directors saw their total pay more than double in the year to June 30, after receiving bonuses of more than £600,000 between them.

The company, based in Bardon, near Coalville – which owns David Wilson Homes – said directors received the bonus after it beat a number of financial targets.

The pay deal was approved by shareholders.

Workers and union leaders yesterday condemned the payments.

Steve Murphy, regional secretary of construction union Ucatt, which represents Barratt workers, said: "These rises are staggering. During pay negotiations they have pleaded poverty when asked about increasing workers' pay."

The company said the wages of all employees, including board directors, had been frozen for the past two years.

It said this year it planned to give its entire 4,000-strong workforce – including 350 in Leicestershire – a two per cent wage rise.

Average annual pay for a skilled bricklayer or joiner is between £24,000 and £28,000.

Less experienced workers, labourers and office staff, can earn a lot less.

A Barratt spokesman said: "The company significantly outperformed expectations in terms of cash generation, debt reduction and operating profit. During the same period, customer satisfaction standards reached record levels."

One building worker, who lives in north Leicestershire, said: "This is disgusting. This pay rise should be handed down to the workers who have helped the company get where it is today."

Barratt made a pre-tax loss of £163 million in the year to June 30 and revenue fell 11 per cent to £2.04 billion over the same period. A huge chunk of the losses were the result of redundancy costs and falls in the value of land.

The three board members who saw the biggest increase included group chief executive Mark Clare, who saw his pay package rocket by two-thirds to £1.4 million after he received a bonus of £568,000.

Mr Clare could receive a further bonus in the current year of up to 150 per cent of his £642,000 salary, giving him a potential pay package of more than £1.6 million.

Steven Boyes, in charge of Scotland, the North and the Midlands, received a package of £794,000 last year, up from £370,000. This included a £316,000 bonus.

Clive Fenton, responsible for London and the South of England, was paid £790,000, up from £379,000. This included a £310,000 bonus.

Barratt has made more than 2,000 job cuts since its £2.2 billion takeover of Ibstock builder Wilson Bowden in 2008.

0
Tweet this article
Report

Your comments awaiting moderation

Be the first to comment

max 4000 characters