Baltimore board votes in pay cuts

Feeling the pinch

By John Leyden • Get more from this author

Posted in Business, 30th October 2001 13:16 GMT

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Senior execs at security firm Baltimore Technologies have agreed to take a pay cut that reflects the firm's diminished financial health.

Newly appointed chief executive, Bijan Khezri, has agreed to work for a salary of £150,000 and to wave any bonus entitlements he might earn this year.

Backdated to October 1, Baltimore's chairman, Peter Morgan, has agreed to slash his wages from £90,000 to £40,000 per year. Non-executive directors will get £18,000 per annum, instead of £25,000.

In a proposal to be put to share holders at Baltimore's next annual general meeting in April, only one third of these sums will be paid in cash with the remainder coming as Baltimore shares bought at prevailing market rates.

Dwindling cash reserves (which stood at £32.4 million on September 30) and disappointing sales of its core PKI technology have forced Baltimore to take a scythe to its business, after a string of disappointing financial results that have been accompanied to heavy job losses. Around 1,400 people worked for Baltimore at the start of the year but this will be cut to 470 by the second quarter of next year. Meanwhile Baltimore's share price has collapsed.

Khezri, who was appointed this month to oversee its ongoing restructuring (which will involve the sale of Baltimore's content security business), said reduced salaries for its board weren't only about saving cash but showed "leadership and sensitivity to both our shareholders and employees at this crucial time." ®