Paul Drechsler received more than £7m in salary and long-term incentive payments in his final year at firm
Paul Drechsler, former Wates chairman and chief executive, received more than £7m in salary and long-term incentive payments in his final year, it emerged this week.
Drechsler, who left Wates in January after 10 years at the firm, received £1.4m in “emoluments” in the year, according to accounts filed at Companies House.
In addition he received £6m under the terms of a long-term incentive plan. The company said that £4.2m of this related to amounts accrued in previous years at the firm.
The payouts were made despite Wates recording a fall in turnover of 22% in 2013 to its lowest level since 2006, with pre-tax profit also falling to £22.3m, its lowest level since 2005.
In Wates’ annual remuneration report it says it aims to pay senior executives basic pay, bonuses and other benefits at the “median” level of market practice, but that long-term incentive packages should be at the “upper quartile” of executive remuneration in the market.
Drechsler’s remuneration included basic salary, an annual bonus plan, benefits in kind, pension payments and a long-term incentive plan (LTIP).
The LTIP is payable in cash after a specified performance period that the firm says is usually three years, and is dependent upon meeting “performance conditions” set out at the start of the LTIP.
In a statement, Wates said: “Paul Drechsler was chairman and chief executive of Wates for a decade. His considerable responsibilities in this dual role included working across the whole group and across issues relating to the owning family, the shareholders.
“Paul’s final payment includes an amount from a long term incentive plan from earlier in his term.
“Wates believes in hiring- and retaining - the best possible people to shape and grow the business.”