Loyalty pays off for Marconi staff

BORN-AGAIN technology group Marconi, which forcibly cashed out small shareholders last autumn for a third below the current share price, has taken £18m in charges over six months to pay for free shares for staff.

Chief executive Mike Parton is on track to collect £25m if the group meets targets.

In total Marconi, down 21 1/2p to 717p yesterday, will spend more than £100m on the remaining staff.

The group laid off 22,000 employees worldwide as it fought to survive the technology slump.

Marconi signalled that the telecoms equipment industry has 'stabilised', though it is cautious about predicting an upturn.

Quarterly sales rose 5% from the preceding three months, thanks to demand for equipment for broadband and third-generation mobile networks.

Operating losses rose £3m to £66m, but net cash rose £9m to £108m. Restructuring charges over two years will total £122m.