UKs Securicor to seek new directors
Securicor, the security services group, is to appoint new non-executive directors following criticism of a £750,000 (E1.1m, $1.2m) bonus paid to Roger Wiggs, the former chief executive who last year became a non-executive.
Major shareholders plan to demand an explanation of the payment, made at the beginning of last year but revealed only last week.
Wiggs, 63, retired as chief executive at the end of 2001. As well as £226,000 salary and fees received in the year to last September, he also received the £750,000 pay-out.
One large shareholder said at the weekend: “We’ll be looking for an explanation of what the payment is for.” Manifest, a shareholder voting agency, plans to alert its institutional members to the bonus.
It is also likely to be pointed out that, as a former chief executive, Wiggs is not regarded as an independent non-executive director. Investors will have the chance to vote against his re-appointment to the board at Securicor’s annual meeting on 13 March.
A Securicor spokesman denied the company has yet received comments or complaints from shareholders, but said: “In line with our desire to always work to the best practice we are in the process of seeking new non-executive representation.”
It is expected that these directors will be independent and will rebalance the board.
The company defended the bonus to Wiggs, saying: “This payment was made in recognition of the significant outperformance in Securicor shareholder value during the period when he was group chief executive and of his role in the divestment in 1999 of the group’s 40% shareholding in BT Cellnet.”
