£14m bonus for Carlton boss

Lucy Farndon12 April 2012

CARLTON chairman Michael Green stands to make almost £14m if he can double the share price under a bumper incentive package made to senior executives. The award may anger shareholders, who have seen Carlton's price slump from a 900p high last year to just 250p.

Green, who earned £892,000 last year, was also handed a chunk of share options in June, along with chief executive Gerry Murphy. Green is not short of cash - in March 2000, he raised nearly £28m from the sale of 3.3m shares at 845p each.

The latest grant is part of a new 'equity participation plan' that requires Green to shell out £1.5m of his own money on 595,555 shares. Carlton then gives him 1.786m shares, worth £4.46m at current prices.

He also receives options over 1.786m shares at an exercise price of 225p. If all performance targets are met, Green would make £13.8m if Carlton's shares hit 500p and more if they rise further.

Murphy was awarded 1.333m shares, worth £3.3m, plus options over a similar number. New finance director Paul Murray got 733,332 shares, worth £1.8m, and options over the same amount. They must each invest their own money in shares.

The shares and option awards are ring-fenced for four or five years. But, if Carlton is taken over, directors could receive a payout sooner. 'The performance conditions are tough and transparent - Carlton will have to outperform against media rivals,' said a spokesman.

IT has also been a lucrative week for executives at rival BSkyB. Chief executive Tony Ball cashed in £5.49m of shares, awarded under a long-term incentive plan. Finance director Martin Stewart was given £2.28m. They stand to make millions more from a long-term share package announced last month.

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