Tomkins' new chief attacks salaries
TOMKINS' new chief executive Jim Nicol has made a clear break with the group's fast-and-loose past, revealing plans to cut basic pay of many top managers - including his own.
The engineering group has been embroiled in a storm of protest, first over perks paid to previous boss Greg Hutchings and then over Nicol's package - worth up to £30m over three years. Nicol, appointed in February, plans to offset the cuts with cash bonuses and share and option awards linked to performance.
Annual operating profit fell from £308.5m to £265.9m, hit by restructuring charges and weak automotive markets. Pre-tax profit rose from £144m to £264m, reflecting last year's loss on the sale of businesses. Sales fell from £4.1bn to £3.4bn, while the dividend is held at 12p. The shares fell 1/2p to 258p.
It also revealed a £133m pensions black hole. Tomkins says there are signs of improvement in an otherwise uncertain market. It is looking for acquisitions in Europe and Asia to reduce its reliance on the US.
