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Carillion gets shareholder OK to start work

NEWS

CONSTRUCTION'S NEWEST contractor Carillion is set to start trading at the end of the month after gaining shareholder approval for plans to split the Tarmac Group last week.

Shareholders voted 96.6% in favour of demerger to form Carillion from the former construction arm of Tarmac. The building materials part of the group will continue to trade under the Tarmac name.

But shareholders were less enthusiastic about the lucrative incentive plan for Carillion directors, with only 83.9% in favour. Incentives are triggered if the new company's share price doubles in the next three years and chairman and chief executive Sir Neville Simms and his top management stand to make millions if they succeed.

Sir Neville told NCE the incentive plan was vital to the success of his share price strategy. He wants the City to appreciate the true value of contracting

'I am determined to focus on shareholder value,' he said. 'I need people committed to that and I want them to benefit.'

(see feature in the Contractors File with this week's NCE)

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