Chief executive Leo Quinn offered bonus of up to 拢10.5m in shares to hit target in three years
Balfour Beatty鈥檚 new chief executive Leo Quinn is set to pocket up to 拢10.5m in shares if he nearly doubles the firm鈥檚 share price over the next three years.
In a statement to the City yesterday, Balfour Beatty revealed Quinn鈥檚 remuneration package, included the provision for him to receive up to 2,766,719 shares in the company over the next three years.
But for him to net the full bonus he will need to boost the firm鈥檚 share price to 拢3.80, up from 拢2.01 today.
Quinn will also receive a basic annual salary of 拢800,000
He will receive 953,952 shares, worth around 拢1.9m at the current share price of 拢2.01, between now and August this year 鈥渢o compensate him for awards forfeited on leaving his previous employer鈥�.
Quinn will then receive further bonuses in January 2017 and January 2018 if 鈥減erformance conditions linked to total shareholders returns鈥� are met.
The firm said that for Quinn to receive the maximum bonus from the final award - the largest award of all - would require the Balfour Beatty share price to average 拢3.80 over the last 60 days of 2017.
Quinn said he saw a 鈥渢remendous opportunity鈥� to 鈥渄eliver significant value for our customers, our people and our investors鈥� from 鈥渞estoring the company鈥�.
He said: 鈥淏alfour Beatty is a world-leading brand with world-leading talent. The entire leadership team will be aligned and incentivised, as I am, on creating a high-performing business that is built to last.鈥�
Kevin Cammack, analyst at Cenkos, said: 鈥淭he magic number that investors will note in respect of this announcement is 380p. The hard part will be getting there but Mr Quinn鈥檚 reputation goes before him and the share price has already rallied over 20% since his appointment was announced (although JLIF might have helped it along too) and ironically QinetiQ [Quinn鈥檚 former firm] has fallen over 15%.鈥�
He added: 鈥淚 can certainly see the recovery opportunity here and the value creation that theoretically is possible but continue to caution that some bad news (possibly including a passed dividend) might still be heading our way in the very short-term to give the new man a workable base to deliver from.鈥�
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