Bosses could get huge bonuses amid fears for city’s shipbuilding industry
BOSSES at BAE Systems are to be rewarded with million-pound bonuses this year, it has been reported.
It comes amid fears for the future of 1,500 BAE Systems workers at Portsmouth’s historic shipyard after the company said it was conducting a review of its business model.
BAE’s top three executives are set to net bonuses after the group was handed almost £200m in a tax rebate, according to The Sunday Times.
It comes after the company was recently hit by the news its Eurofighter consortium is likely to lose its battle for a major contract to provide fighter planes to India.
The leader of Portsmouth City Council, Cllr Gerald Vernon-Jackson, said: ‘A week after failing to win a contract it’s surprising.
‘That was expected to go to BAE and yet they failed to win it. If they are not winning business contracts why are they awarding themselves huge bonuses?
‘But it is a business and if these people are creating a lot of business which brings in lots of jobs to Portsmouth and other parts of Britain then that’s how it is.’
Cllr Vernon-Jackson said the priority for Portsmouth is to make sure long-term maintenance work on ships stays in the city.
He added: ‘We need to make sure we keep long-term maintenance work in Portsmouth.
‘We need to make sure we get the new carriers down as soon as possible so we can do the work on them here.’
A spokeswoman for BAE systems said: ‘Executive pay is performance related and aligned to the interests of shareholders.
‘BAE Systems’ long-term incentive plan for senior executives covers a three-year period and includes a range of measures such as total shareholder return as well as earnings per share.’
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Friday 25 May 2012
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