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Sir Fred critic ‘signed off a £4.5m City bonus’
Nick Goodway16 Apr 2009
MICHAEL FALLON, the Conservative deputy chairman of the Treasury select committee, risked accusations of hypocrisy today after it emerged he has approved a multi-million-pound payout to a leading financier.
Mr Fallon, who has been deeply critical of the City bonus culture, is a £45,000-a-year non-executive director of financial firm Tullett Prebon, and chairs its remuneration committee.
Tullett's chief executive Terry Smith picked up £4.52 million in pay and bonuses last year and was handed a £5.1 million free-share award.
Tullett's revenues soared by 25 per cent last year and profits rose 36 per cent to £155 million.
In today's annual report for the money, shares and foreign exchange broker, Mr Fallon said the committee “considered whether to take account of general public issues” but would “make decisions in accordance with the best interests of the company and its shareholders and in conformity with previously stated policies”.
Mr Fallon has been a keen critic of former Royal Bank of Scotland chief executive Sir Fred Goodwin's £703,000-a-year pension, and of City minister Lord Myners, who approved the payout after Sir Fred was ousted from the collapsing bank last October.
In the Guardian late last year Mr Fallon said: “Mega-bonuses, out of all proportion to ordinary earnings, destroy the social consensus on which a free economy depends.”
The value of Mr Smith's £5.1 million free share award is based on revenues rising by 10 per cent over the next three years.
Reader views (3)
Don't you rich mob worry too much we'll all struggle along on our £600 a month state pensions.
- David., Chertsey.UK., 16/04/2009 18:19
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Another classic example of where there are piles of cash, there will be many peeps with their sticky fingers entrenched within the pile.
The City stinks. Downing Street is a cesspit.
MISS PIGGY SMIFF and JACKBOOT STRAW think they are running a Police State.
Joe Public has had enough.
More than enough.
- Reuben Camara, Morecambe UK, 16/04/2009 16:03
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I dont recall Tullet Prebon being involved in any credit related events, or having been rescued by the government.
Where is the problem? Just bonus related mischief.
- Dave Davies, Basingstoke, 16/04/2009 15:34
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