Why did Newcastle Airport boss receive huge bonus?
Mar 28 2009 by Adrian Pearson, The Journal
“I would want to look very closely at what advice the airport authority remuneration committee was given when these bonuses were agreed.
“I will be seeking advice on how this matter can be taken further as I cannot see the public interest in the agreement that has been reached or the fact that all the crucial details remain secret.”
Mr Parkin spent five years as managing director of Bristol International Airport before coming to Newcastle in June 2002. He had also previously worked at P&O, Princess Cruises Europe and Thomas Cook Group.
While in charge, he oversaw the arrival of cut-price travel at the airport, including easyJet setting up a base in 2003.
He was suspended in March 2007 over what were described as “certain personal contractual issues” and resigned the following May, shortly before the legal action was revealed. In September 2007, his appointment as chief executive of Leeds Bradford Airport was announced.
Accounts for 2007 released by Companies House yesterday revealed the bonuses to be paid to Mr Parkin and the now-deceased airport finance director Lars Friis were £8,547,000.
By the end of 2006, payments totalling £6,297,000 had already been made. The airport has clawed back more than £4.7m – but £3.8m will still go to Mr Parkin and £1.5m to the estate of Mr Friis.
Coun Nick Forbes, leader of the opposition Labour group on Newcastle City Council, said: “If a settlement has been reached, with multi-million pound bonuses still being paid out and a large legal bill run-up in the process, the public has a right to know how and when this was allowed to happen.”
An airport spokeswoman said: “Newcastle International Airport Ltd has today published its annual report and accounts for the year ending December 31 2008.
“We can confirm that the accounts contain the effect of the settlement reached with the former executive directors of the company.
“The company cannot comment further on this matter.”
:: Read more on the Parkin controversy
Airport move on ex-chief May19 2007 By Chloe Griffiths, The Journal
Newcastle Airport settles with former boss John Parkin Oct 21 2008 By Paul James, The Journal
Airport boss is suspended Mar 24 2007 By Ross Smith, The Journal
