A senior IT analyst has slammed some of Logica’s top executives, claiming that they should not be eligible for bonuses given the bad performance of the company in recent years.
Logica’s latest annual report highlights that its CEO, Andy Green, and recently retired Seamus Keating, who was in charge of the company’s Benelux operations, will not be accepting bonuses this year despite being entitled to hundreds of thousands of pounds in shares.
“With respect to share awards in 2012, the Committee has agreed a proposal from Andy Green and Seamus Keating that, given the impact of the restructuring announcement on people and shareholders, share awards should not be made to them," the company said.
However, Richard Holway, analyst for TechMarketView, has little sympathy for the gesture and said that neither Green nor Keating should have been entitled to any money in the first place.
Holway believes that given the company’s poor position in the market since Green’s appointment as CEO in early 2008, his performance does not demand a financial reward.
“So, what of the ‘Andy Green Years’? Logica’s share price was 164p on the day that Green’s appointment was announced,” said Holway. “It is now 83p, down 49 percent. Conversely the FTSE SCS Index was 615 on the same day and is now 906, an increase of 47 percent."
“I therefore find it a bit difficult to understand how Green or any of his exec team should be eligible for any payments from their long-term incentive plan.”
Logica had a difficult year in 2011, when it announced 1,300 job cuts and restructuring plans that are going to cost the company £93 million.