Axed Carillion pair pocket £750,000

TWO executives of building group Carillion who were axed in a boardroom shake-up last year have shared a £750,000 pay-off. Euan McEwan, who was in charge of private finance initiative contracts to build roads, hospitals and prisons for the Government, and John Sharples, the construction director, quit Carillion after the arrival of new chief executive John McDonough.

McDonough has been busy streamlining the board since Carillion's demerger from Tarmac two years ago. Accounts just published show that Sharples received £413,000 for taking early retirement and McEwan received a £334,000 golden handshake.

News of the pay-offs follows revelations last week that directors and senior managers at Carillion are in line to share a potential £17m windfall.

Under the controversial scheme, Sir Neville Simms, Carillion's non-executive chairman, stands to receive nearly £3m if the company's share price reaches an average of 276p in the six weeks to the end of August.

Though the plan encourages directors to double the share price in three years, critics pointed out that the scheme was not linked to profit performance. Carillion is on track to hit the price target. Its shares closed on Friday at a high of 222 1/2p.

McDonough is not a member of the share scheme, though his options package is already in the money by almost £500,000.