Former Melrose Industries Executives Receive £180 Million Bonus from Incentive Scheme

Former Melrose Industries executives, including co-founders Simon Peckham and Christopher Miller, received the majority share of a £180 million bonus pool as part of a four-year incentive scheme that recently concluded. The scheme awarded shares equivalent to 7.5% of any increase in Melrose's market value, resulting in a substantial payout to top executives and senior staff members.

Former Melrose Industries executives, including co-founders Simon Peckham and Christopher Miller and former finance director Geoffrey Martin, received the largest portion of a £180 million bonus pool. This payout was the result of a four-year incentive scheme that concluded at the end of May.

Melrose, a FTSE 100 engineering company, disclosed on Monday that share bonuses were distributed to participants in the scheme, which was introduced in 2020. Under this plan, 21 top executives and senior staff members were awarded shares equivalent to 7.5% of any increase in Melrose’s market value over four years.

During this period, Melrose's market value rose from approximately £3.5 billion to £8 billion, creating a total gross pool of about £330 million. Nearly £158 million of this amount was paid to HM Revenue & Customs to cover participants' tax obligations.

Each of the three former executives must retain shares worth thrice their final salaries, approximately £1.5 million, but can sell the rest. The payout is the final remuneration for the founders, who spearheaded the company since its inception in 2003 and led significant acquisitions, notably the 2018 GKN takeover. Melrose has since focused on the GKN aerospace operation and expects an adjusted operating profit between £550 million and £570 million in 2024.