Cotton pays back £20K expenses claims to NCC
The exit terms for Rob Cotton’s sudden departure from listed cyber security firm NCC Group reveal that he has repaid almost £20,000 of expenses claims to the company.
On March 1, NCC Group announced that Rob Cotton had stepped down as chief executive and executive director of the board with immediate effect. He was placed on immediate garden leave and will cease to be an employee at the end of October.
Although his services agreement provides for a 12 month notice period, this has been reduced to eight months by mutual agreement and Cotton will continue to receive eight months’ salary, pension and car allowance for that period, totalling just under £400,000.
The company also said that an option granted to Cotton in August 2014 is due to mature whilst he is still employed.
“In the unlikely event that the Rumunerations Committee determines that the performance condition in relation to such options has been achieved… he has agreed not to exercise his option and any purported exercise of such option will not be valid,” it said.
Cotton has also agreed not to exercise his option on deferred share that are due to vest in May and no payment will be made in lieu of annual bonus for this financial year.
Cotton, who had been chief executive for 14 of his 17 years with the Manchester-headquartered company, steered it through its move to the London Stock Exchange’s main market in July 2007.
Chief financial officer Brian Tenner took over as interim chief executive to lead a strategic review, following another profit warning this month.
Group revenue was £125.8m for the six months to the end of November (2015: £93.5m). However, NCC has suffered three large contract cancellations in quick succession and one deferral in the Assurance division, which reduced the group’s rate of growth in the financial year. Pre-tax profits remained static for the half year at £7.4m (2015: £7.5m). Adjusted pre-tax profit after exceptional items was 5% up at £16.7m.
