AWG admits mistake over bonuses

EXECUTIVES at AWG, who oversaw the water group's much-criticised financial restructuring, were paid nearly £500,000 in special bonuses which the company now admits are in breach of corporate governance best practice.

According to AWG's annual accounts, Chris Mellor, the ousted chief executive who left in the spring with a £1.2m pay off, got a £150,000 one-off bonus for organising the debt refinancing of its Anglian Water services in a long-winded restructuring which cost it an extraordinary £128m.

Elliot Mannis, the finance director and mastermind of the restructuring, got a one-off £200,000 swelling his total pay for the year by more than 90% to £585,000. Fellow Anglian Water executives Roy Pointer and Tony Eckford shared £125,000 in 'additional bonuses' on top of £173,000 'annual bonuses'.

But in the company's annual report, the remuneration committee, headed by Logica executive Jim McKenna, indicates the special bonuses may have been a mistake.

In his report, McKenna said: 'The payments were made in July 2002. In accordance with best practice, the committee has now determined that special or transaction bonuses would not be expected to be paid in the future.'