C&W successfully reduces outgoing CEO’s severance pay

19 Jun 2003

Troubled telco Cable & Wireless (C&W) [London: CW] has finalised redundancy negotiations with former CEO Graham Wallace, reducing the cash severance payment to the ousted supremo from his full entitlement of two years’ pay, to six months’ salary. However, investors may not see the deal as a great victory with the group still set to pay Mr Wallace close to GBP900,000 in pension and salary payments, a high price given that his failed multibillion pound acquisition spree effectively destroyed the shareholder value of the company without ever making it the leading global data carrier he had intended. In addition, Wallace amassed a pension pot of GBP4.4 million in his six years at the helm, during which time he oversaw a fall in its share price from a high of GBP15.64 to a low of GBP0.45.

United Kingdom