M&B bosses get limited bonuses
Limited bonus payments for Mitchells & Butlers (M&B) chiefs resumed in 2008 despite the crystalisation of a near-£400m hedge fund loss last January.
Four executive directors at Mitchells & Butlers previously deferred payment of their annual bonuses, amounting to almost £1.4m, that were due from the 2007 financial year pending the outcome of M&B's delayed property transaction.
In the event, the bonuses from 2007 were not paid in the wake of the hedge loss.
Finance director Karim Naffah also resigned in January 2008 and chief executive Tim Clarke tendered his resignation which was not accepted.
The 2008 annual report reveals that Naffah was paid £298,000 in relation to entitlements due under a 12-month notice period following his resignation on top of a basic salary of £131,000.
He earned £418,000 in the 52 weeks to end of September last year, slightly up from the £399,000 he earned the year before.
Chief executive Tim Clarke earned a basic of £550,000 plus a bonus of £28,000 in 2008 - maximum bonus achievable was £554,000.
His total earnings, including benefits, were £611,000 in 2008 compared to £560,000 the year before. He also earned £60,767 was a non-executive director of Associated British Food.
Adam Fowle, who replaced Tony Hughes as boss of the pub restaurants division as the start of 2008, earned the biggest bonus paid to the executive directors, some £61,000 out of a maximum possible of £350,000.
His total earnings were £435,000, including his basic salary of £349,000.
Mike Bramley, heads of the pubs and bars division earned the next highest bonus - £20,000 out of a total possible of £390,000.
His total earnings were £431,000, including a basic salary of £386,000, in 2008 compared to £395,000 the year before.
New finance director Jeremy Townsend, who joined the company on 31 January 2008, earned a bonus of £10,000 out of a total possible of £206,000. His total earnings were £219,000 with a basic salary of £197,000.
Tony Hughes, who took early retirement on 31 December 2007, earned a bonus of £17,000 out a possible maximum of £96,000. He earned £123,000 for the 2008 financial year compared to £399,000 the year before.
Roger Carr, who stepped down as chairman on 20 June 2008, earned £164,000 plus £17,000 related to the termination of his employment.
Total emoluments to M&B executive and non-executive directors rose to £2,682,000 in 2008 compared £2,181,000 in 2007 when bonuses were eventually not paid to executive directors.
Clarke had been in line for a bonus payment of £462,000 fo the 2007 financial year on top of his £538,000 salary, while Naffah was to receive £332,000 on top of his salary of £386,000.
Tony Hughes, the outgoing managing director of the group's restaurant arm, was to receive £276,000 on top of his salary of £374,000, while Mike Bramley, head of the group's pub and bar division was to earn £323,000 on top of his basic pay of £374,000.
