Carillion chief heads for exit as predator becomes potential prey

Nearly three years ago, Carillion chief executive Richard Howson was looking to take advantage of another builder which had fallen on hard times when he launched an opportunistic takeover bid for rudderless rival Balfour Beatty.

That deal failed due to Balfour’s refusal to go back on plans to sell its consultancy business Parsons Brinckerhoff, which accounted for around a third of profits.

Balfour itself is on the road to recovery under new chief executive Leo Quinn, but today Carillion is left without a boss as the 48-year-old Howson, who earned £1.5 million in pay and bonuses last year, was abruptly defenestrated over the weekend.

It is understood there will be no pay-off for the former chief executive, who stays on for another 12 months to help clear up the mess for his successor.

The reshuffle caused by Howson’s departure from the board and the temporary promotion of Keith Cochrane to chief executive also sees Baroness Sally Morgan, Tony Blair’s former gatekeeper in 10 Downing Street, promoted to non-executive director.

“The world has clearly changed dramatically,” chairman Philip Green told analysts this morning.

Carillion acted as a consolidator in the 2000s, buying rivals Mowlem and Alfred McAlpine, but now is in the bid spotlight.