The severance pay of former Interserve chief executive Adrian Ringrose has been criticised following the company’s share price collapse.
Ringrose stepped down as chief executive at the end of August following several months of handover to new CEO Debbie White. His departure came two weeks before a profit warning, which saw its share price halve to 72.25p from 152.75p, with the support services business stating that performance would be “significantly below” previous expectations.
Costs associated with exiting its energy-from-waste business will exceed the £160m set out earlier this year, having initially been costed at £70m in May 2016 and increased this February.
However, Ringrose is being treated as a “good leaver” by Interserve, according to The Times, having been paid £325,593 in salary and unused holiday, and granted share awards taking into account his notice period. He also received £10,000 towards legal fees and £20,000 towards “outplacement support”, as part of his severance agreement.
Stephen Rawlinson, analyst at consultancy Applied Value, was referenced in The Times as stating it was wrong that Ringrose was not sharing investors’ pain, by having some of his severance returned.
A spokesman for Interserve said Ringrose had made a “considerable contribution, having been chief executive for over 13 years, transforming the scale and culture of the business”.
Interserve’s shares are currently priced at 109.75p.