Forth Ports bosses' £880,000 bonus pot

EXECUTIVES at Forth Ports, which is subject to a recommended £760 million takeover deal, shared more than £880,000 in bonuses last year after seeing their basic salaries frozen for the second year running.

Charles Hammond, chief executive of the company, which owns six Scottish ports and also owns property interests including the Ocean Terminal shopping centre, received a 391,000 bonus on top of his 460,000 salary. Together with benefits, his total pay package rose to 984,031, up from 822,896 in 2009.

Retiring finance director Wilson Murray received a 242,250 bonus on top of a 285,000 salary as part of a package of 615,267.

The total bonus pool shared by the executive directors was 888,250, up from 512,500 in 2009. The executive directors, along with other key managers, agreed to a freeze in their salaries with the exception of Perry Glading, managing director of the Port of Tilbury, who was awarded a 20,000 increase to 300,000 in recognition of increased responsibilities he took on during the year. He also received a 255,000 bonus, up from 140,000.

For the current year, basic salaries for executives and fees for non-executives have been increased by 3 per cent.

The company's latest annual report also shows that Stuart Paterson, the former finance director of newspaper publisher Johnston Press who took up the same role at Forth a fortnight ago, started on a salary of 330,000, a cut on his 361,000 basic salary at Johnston where he also earned a 157,000 cash bonus and would have received a further shares bonus.

At Forth he has been granted options over 7,789 shares. Although the shares are intended to vest in two years time, if there is a change of control of the company - which now seems highly likely - they will vest immediately. At the 1,630p a share Arcus offer price, those options are worth 127,000.

The company said the award was made to partially compensate Paterson for the loss of deferred and loyalty bonuses in his previous employment.

The latest report also shows the board owns around 5.5m worth of shares in the company between them. In addition they hold share options under long-term incentive plans which are potentially worth more than 3.6m.

Forth's full year results came in slightly ahead of expectations with underlying pre-tax profits of 36.6m on revenues 5 per cent higher at 181.9m.Volume through its Scottish ports was 11.6 million tonnes, an increase of 2 per cent.

Last month, the board agreed a 760m offer from infrastructure fund Arcus which owns transport interests across Europe ranging from toll roads to trains,

Arcus has also pledged its commitment to invest in the long-term future of the Edinburgh-based business and to keep it headquartered in Scotland.

Under the deal, which is still to be approved by shareholders, Otter Ports - part of Arcus's unlisted European Infrastructure fund which holds a 22.8 per cent stake in Forth - will also pay a dividend of 20p per share to shareholders on top of the offer price.