Discredited former Hampson chief walks away with big pay-off
THE discredited former chief executive of Black Country aerospace group Hampson Industries has walked away from the company with a £475,000 compensation payment and other benefits.
Kim Ward was heavily criticised earlier this year by a judge in the High Court during a legal action brought against Hampson by a group of investors led by Midland entrepreneur David Grove.
Mr Justice Field said Mr Ward, who stepped down from the aerospace group last year, had misled the consortium prior to its purchase of automotive subsidiary Hampson Precision Automotive.
Latest figures released by Hampson show Mr Ward received £623,473 following his departure from the group. This was split between a salary of £106,433, compensation for loss of office of £475,755, a pension contribution of £27,944 and taxable benefits of £13,341.
In its annual report statement, Hampson said: “Mr Ward left the employment of the group and resigned as a director on July 31, 2010 and, at that time a compromise agreement was put in place which provided for a payment in lieu of notice and loss of benefits in accordance with Mr Ward’s service agreement, together with £79,825 as a payment to Mr Ward’s personal pension policy, £30,000 as a non contractual compensation payment for loss of employment, and £40,430 as further compensation for loss of employment and for Mr Ward continuing to devote his full time and attention to the needs and requirements of the group and the duties and obligations already in place upon him under the terms of his service contract in the period from the date of the compromise agreement to July 31, 2010.”
Mr Grove’s consortium brought the High Court case against the group earlier this year.
The consortium, which represents Skelmersdale-based Erlson Precision Components, formerly Hampson Precision Automotive, had claimed the parent company failed to disclose full details about the state of HPA’s customer relationships prior to the £2.5m deal last June.
In particular, it said it had not informed the group of investors that at the time of the deal one of HPA’s main customers – Cummins Turbo Technologies – was set to pull out of its dealing with the firm.
In view of this, Mr Grove said the consortium had based their decision to buy HPA on unreliable forecasts for the business.
A source close to the deal said: “I find it difficult to believe that a senior manager discredited in the way Mr Ward was could be walking away from the company with such a pay-out.”
