Euroclear Merger Means Early Christmas for CRESTCo Executives

Anyone still tempted to think that the managers of user-owned industry utilities are different from the rest of us and inspired by nothing but an ethic of public service should read paragraph 4 of Part VI of the offer document issue by CREST and Euroclear to CREST shareholders on their proposed merger. Though it discloses the salaries of the two top CREST executives – acting CEO Hugh Simpson (185,000) and development director David Wyatt (142,500)- and explains that they are entitled to pension contributions equivalent to 20 percent of earnings and an annual performance-related bonus scheme worth 25 percent of earnings, these are not the interesting titbits. What is interesting is that, if the merger goes ahead, it will trigger the early realisation of the CRESTCo Limited Deferred Cash Bonus Plan. This will release the aggregate sum of 1.6 million to be shared out between the senior executives of CRESTCo, including 138,750 to Hugh Simpson and 95,625 to David Wyatt. If the merger fails, they will have to wait until March 2004 to collect the money.