G4S boss who oversaw botched Olympics contract lands bigger pay packet for 2012 despite firm's 88m loss on London gamesG4S chief executive Nick Buckles paid 1.19m, up 170,000 on last yearCompany lost 88m in Olympics fiasco when they failed to provide security
, following million pound losses during the Games.
G4S boss Nick Buckles was paid a total 1.19million in 2012, up 170,000 on his 2011 paycheck, despite the company nursing an 88million loss on the London 2012 contract.
The security giant failed to provide the 10,400 guards needed during this summer's main event and the military was forced to step in.
Big Bucks: Nick Buckles, pictured defending his company in the Commons after G4S's Olympics blunder, was paid an extra 170,000 in 2012 compared to the previous year
As well as an 830,000 salary, Mr Buckles' 2012 pay packet included 23,500 in benefits and 332,000 in payments in lieu of pension. Mr Buckles 2012 pay packet was boosted by bigger pension payments.
However, neither he nor other executive directors earned a performance-related bonus.
G4S said in its annual report Mr Buckles' and other executives' salaries were frozen in 2012 and will not increase this year – the fourth time in five years their salaries have been frozen.
But it revealed plans to increase potential long-term share bonuses this year to ‘ensure that the directors continue to be incentivised and motivated’.
Mr Buckles' maximum shares bonus could rise to 2.5 times his salary from a maximum of two times in 2012 – meaning a potential 2.1 million in shares if he hits targets.
Loss: G4S lost 88m in the London Olympics Games contract after they failed to provide all the security guards needed for the Games
Performance-related bonuses will also now depend on factors including organic growth, cash generation, strategic execution and organisation, instead of being tied purely to profits.
G4S's Olympics failure saw Mr Buckles hauled before MPs, during which he admitted it was a ‘humiliating shambles for the company’. Extra military personnel had to be called in to fill the gap left by G4S's failure to supply enough staff for the 284 million contract.
Mr Buckles said in the annual report it marked ‘one of the toughest periods in the group's history’.
Chairman John Connolly said his first few months in office were a ‘baptism of fire’, but insisted there was ‘no systemic problem’ in the way the group ran its business.
Instead he said the ‘unique’ nature of the Olympics contract and the tight time frame were behind the failure.
Mr Connolly added there were ‘no significant shortcomings’ in Mr Buckles' performance, ‘nor any serious failings’ attributable to him around the Olympics contract.
G4S is the largest employer on the London Stock Exchange with more than 620,000 staff worldwide.
The company's charitable donations during the year surged to 2.8 million from 344,000 a year earlier – driven by a 2.5 million handout to military charities.
Shareholders will vote on the company's pay deal at its annual meeting on June 6 in London.