Gatwick bosses’ pay linked with airport sale

Proposed plan for new runway at  Gatwick Airport SUS-150302-164645001
Proposed plan for new runway at Gatwick Airport SUS-150302-164645001

Gatwick bosses’ pay has been linked with how much the airport is sold for.

The company’s latest annual report stated ‘certain’ executive board members will be compensated for services set to be valued according to ‘the timing and level of any future sale’ of Gatwick Airport Limited (GAL).

The document stated the value of their equity instruments ‘will be based on the internal rate of return achieved by the Company’s controlling shareholder from acquisition to sale of their investment in the Company’.

Accountants valued their instruments by employing ‘a series of probability weighted scenarios as to the financial performance of the Company, including dividend cash flows, and the timing and level of any future sale’.

The payouts under the Long Term Incentive Plan were capped at an undisclosed amount.

A spokesman for GAL said: “In common with many other companies Gatwick Airport has in place arrangements to link executive compensation to the company’s performance and to the long term value of the business. These arrangements have been in existence for some time and take into account a number of financial and operational metrics. They are not directly related to the government decision on a second runway.”

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