Amey bosses shelve bonuses

By Lisa Buckingham
Updated: 18:00 EST, 13 April 2002

 

DIRECTORS of Amey, the business services group, have deferred their bonuses for three years after the introduction of new accounting rules that have lopped £64m off stated profits since 1999.

The decision is an attempt to head off criticism from shareholders that executives will effectively be rewarded twice for producing the same profits. The new accounting rules will cut profits that companies have already announced, transferring surpluses to future years.

Directors' pay and remuneration could benefit hugely as a result. Bonuses could be calculated on past profits before they are restated downwards, and then again on future earnings which will be inflated as contract income is reflected.

One shareholder said: 'We will be looking closely at this to ensure the board does not reward itself twice on the same earnings and also to make sure that Amey does not set an unfortunate precedent.'

Amey will try to defuse any shareholder worries by putting its remuneration policy to the vote.