Letters - Getting what you pay for.
Really such mealy mouthed comments (Fat cat payouts come under fire from finance chiefs, page 1, 20 September)! Where past record indicated that on appointment a director is unlikely to produce the goods, then rightly significant termination ‘bonuses’ are inappropriate and the contract should not be made and be challenged by shareholders and institutions.
However, where there is a past record of success in business or profit growth, a company will never attract the ‘best’ man for the job without the inclusion of share options, termination payments etc. The contract is providing not merely for the provision of the incoming director’s expertise but also the ‘risk’ he is taking in moving from what is probably a ‘comfortable’ status quo.
C. J. Rogers, Chase Buckley.