Wolfson chief could see pay package top £1.7m

The chief executive of Wolfson Microelectronics could see his total pay package top £1.7 million under a new remuneration policy being proposed at the ­Edinburgh technology firm.

Wolfson Microelectronics: Chief could see pay package top 1.7 million pounds. Picture: Sean Bell

The bumper package for Mike Hickey would only be triggered if the company smashed stretching targets, and more than half would be made up of long-term bonuses which would not be paid until after 2017.

If Hickey achieved targets set for 2014, he could be in line for a total package of £759,000 with £1.2m under a “stretch” target and a £1.71m maximum payout. He would be likely to receive around £315,000 if targets are not met.

Chief financial officer Mark Cubitt could receive a maximum of £935,000 under the scheme, with an “on-target” figure of £462,000.

The higher potential packages being proposed come after Hickey and Cubitt saw their total pay fall to £315,000 (from £415,000) and £235,000 (£287,000) respectively in 2013 after a disappointing year which saw Wolfson’s revenues drop.

Writing in the annual report Glenn Collinson, chairman of the company’s remuneration committee, said the two executives have had a “tough year” during which Wolfson had suffered several negative events, some of which were beyond the direct control of the executives.

The committee said it had decided to “moderate” performance targets to strike the right balance on executive pay and stressed that the potential payouts should be viewed in light of the potential increase in shareholder returns.

In return for a longer vesting period for long-term awards, the directors can earn up to 20 per cent more under the scheme. Shareholders will be asked to vote on the new policy at the company’s upcoming AGM.