Manufacturing bosses to share £250m bonus pot
Senior management at engineering group Melrose have split a bonus pot worth £250m earned from a five-year incentive plan.
Four directors, including the company’s three founders, have received around 70%, with the remainder split between about 20 other senior managers.
The announcement came on the day that it was confirmed Melrose would return to the FTSE 250.
Its share price is more than five times higher than it was five years ago and Melrose now has a market value around £4.5bn.
The four directors are chairman Christopher Miller, vice-chairman David Roper, chief executive Simon Peckham, and chief financial officer Geoff Martin.
The total bonus pot for the management team was worth nearly £250m, although share options of about £115m were not converted into shares but cancelled in exchange for cash payments to satisfy the tax bill.
Melrose has created 54.45m shares, of which nearly 70% has gone to the four directors, which are worth around £90m.
The group “specialises in the acquisition and performance improvement of good manufacturing businesses”.
Last year it sold Elster for £3.3bn, having paid £1.8bn for it in 2012. Melrose went on to return £2.4bn to shareholders.
Earlier this month the Warwickshire group told the stock market it “is seeking another acquisition to create further value for shareholders and is confident of finding a suitable opportunity in due course”.
It currently has two manufacturing businesses in its portfolio – Nortek, which makes air management and home automation solutions, and Brush Turbogenerators, which makes electricity generating equipment for the power generation, industrial, oil & gas and offshore sectors.
