The ousted boss of troubled aerospace and technology group Cobham will get a £1m golden parachute despite presiding over the company going into a tailspin.
Bob Murphy, who bailed out of Cobham in December, is expected to receive a year’s salary under the terms of his contract as well as £200,000 to allow him to repatriate himself and his family to the US.
The terms were revealed in the FTSE 250 group’s annual report, which showed that Mr Murphy - who announced he would be leaving Cobham in August - received pay and benefits totalling £1.52m for 2016, despite the company running into serious troubles. As result of the company’s problems, he received no bonus during the year.
Since Mr Murphy took the controls in 2012 Cobham has faced a host of troubles including an acquisition spree which many think the company overpaid for, a financial scandal and a string of profit warnings.
In an attempt to get Cobham’s debt pile to manageable levels, Mr Murphy last year ran a £500m fundraising but this was not enough to secure his position.
He was replaced by Laird’s David Lockwood, who last month announced another profit warning - Cobham’s fifth in 15 months. On March 2, the new boss said Cobham would be raising another £500m with a rights issue to get itself back on track.
In his opening statement to the annual report, chairman Michael Wareing - himself a recent appointment after predecessor John Devaney said he would go in November - highlighted Cobham’s troubles.
“It has been a deeply disappointing year,” he said, pointing to poor financial performance and the departure of the chairman, chief executive and finance director.
Figures for the year showed a pre-tax loss of £847.9m, up from £39.8m last time round. On an underlying basis, pre-tax profit was £175.2m, down from £280.4m a year ago. Revenue also dipped, falling from £2.07bn last time round to £1.94bn.