Ministers seek new Ferguson Marine board member to chair remuneration committee after ferry bonuses scandal

The yard is seeking new board members, a contract notice states.

Ferguson Marine are searching for a new board member to lead on work around bonus payments for staff after the yard was plunged into further controversy earlier this year due to unknown bonuses.

Auditor General Stephen Boyle detailed “unacceptable” bonus payments totalling £87,000 made to six senior members of staff in 2021/22 despite the spiralling costs and delays in the delivery of two lifeline ferries, the Glen Sannox and hull 802.

This led to political recriminations from the Scottish Government and ministers. First Minister Humza Yousaf said he had made it clear no further bonuses should be paid for the 2023/24 financial year.

Ferguson Marine was at the centre of a political storm around bonus payments to senior staff.

The decision to pay the bonuses were made by Ferguson Marine’s internal remuneration committee, a body that it is now looking for a board member to chair.

A contract notice published by the yard shows two new board members are being recruited, with one set to chair the remuneration committee and the other to chair the risk and audit committee, with applicants needing “requisite experience”.

In June, economy secretary Neil Gray said there was a “process ongoing” around renegotiating contracts to ensure no future bonuses were paid to senior leadership at the yard.

Chair of Ferguson’s, Andrew Miller, described the bonuses as “retention payments” and told MSPs that without such payments “the future of Ferguson Marine yard is at risk”.

Then deputy first minister John Swinney branded the bonus payments, which were made without Scottish Government knowledge despite ministers having taken the yard into public ownership in 2019, as “reprehensible”.

And in April Mr Yousaf said he had “made it clear there should be no bonuses paid” in relation to the two vessels still being built. The First Minister added it was “his expectation” that bonuses should not be paid for the 2023/24 financial year.

A Scottish Government spokesperson said: “Scottish ministers are responsible for the recruitment of non-executive directors of the Board of FMPG. A recruitment exercise began on August 22 to secure permanent chairs of the remuneration and risk and audit committees following end of tenure of existing office holders. Applications remain open until September 22.”