Capita's top brass bags 20% rise - as IT bods shiver in wage freeze
Staff and bosses locked in salary talks for 2013
Capita's top bosses' annual compensation packages rose by a fifth last year - at the same time the UK outsourcing giant's IT Services (ITS) workers had their wages frozen and bonuses scrapped.
Hard-pressed ITS staffers, who are thrashing out a pay deal for 2013, were furious when they learned of the windfall enjoyed by execs at the AIM-listed firm. Salary increases for the IT services arm were stalled when the division's performance failed to meet the management's expectations.
According to Capita's financial report for 2012, the company's "key management personnel" pocketed £7.6m in short-term employment benefits, up from £5.5m a year ago.
Pension contributions fell to £100,000 from £200,000 and share-based payments remained the same at £3.6m; total rewards for the aforementioned "key management personnel" stood at £11.3m, up from £9.3m.
"Where's the austerity?" asked one Capita worker. "Where is the budget tightening that we are told is occurring at all levels?"
A pay review for ITS staff for the coming year was started on 1 April, but if results from last year are any measure, a bumper pay day is hardly around the corner: turnover at the unit fell 0.67 per cent to £633.4m. The chilly economy was blamed for the slip.
We asked Capita to explain why execs were given raises last year but the company avoided the question. A spokeswoman did however confirm the annual pay review for all ITS people is underway.
"It would be inappropriate for us to comment further, given that this is a confidential matter between the company and its employees," she stated. ®