Balfour doubled chairman’s salary during turmoil

Aaron Morby 10 years ago
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Balfour Beatty doubled Steve Marshall’s salary to £531,500 during the eight months that he acted as executive chairman.

Marshall became executive chairman last May following the abrupt departure of chief executive Andrew McNaughton.

He received a temporary increase in his annual fee from £265,750 to £531,500 “to reflect his additional responsibilities and time commitment,” Balfour Beatty said in its just released annual report.

The move saw his role changed from an average two-day a week commitment to attending the unprecedented 26 board meetings as Balfour battled with problem contracts, sought to sell Parsons Brinckerhoff and became entwined in failed merger talks with Carillion.

Group finance director Duncan Magrath, who leaves Balfour on 6 May, also received an interim responsibility allowance of 20% of salary paid monthly up to 31 March 2015.

In total, Magrath received £759,994 in 2014, including £166,803 from a long-term incentive plan.

Iain Ferguson, Chairman of the Remuneration Committee, said: “The Committee considers that both adjustments were entirely appropriate in the absence of a chief executive during a period of significant corporate activity.”

The report also reveals that new group chief executive Leo Quinn will see his annual incentive plan include cash targets for the first time at the group.

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