Pandemic? Alright for some (6)

Firms, including those receiving state support to pay “furloughed” staff, have gone ahead with long-term incentive plans (LTIPs) that hand directors sizeable stock awards.

Insurer Prudential announced executive pay cuts “in the light of the current situation and the need for continued restraint in executive remuneration”. For chief executive Michael Wells, that meant a salary reduction of £23,000, to £1.15m.Less than four hours later, in a separate disclosure, the insurer handed Wells an LTIP worth £878,873 at current share prices. The stock could be worth significantly more by the time the scheme pays out in April 2023, if markets rebound once the Covid-19 pandemic eases.

ITV directors including chief executive Carolyn McCall volunteered to take a 20% pay cut and forfeit their 2020 bonuses. Three days later, ITV announced LTIPs and other share-based bonus payments which would be worth £3.2m to McCall alone, even at current low share prices.

Channel 4 has already paid out millions in bonuses to bosses and staff.

Daily Mirror boss Jim Mullen Mullen was handed a 750,000-share LTIP worth more than £650,000 at present.

G4S granted LTIPs worth a notional £9m this week to 10 senior staff.

https://www.theguardian.com/business/2020/apr/11/ceos-taking-covid-19-pay-cuts-should-not-be-rewarded-with-shares