Former airport boss received £2m payoff
28.03.09
The former Newcastle Airport boss at the centre of legal action over a multi-million pound bonus received £2m in an out-of-court settlement, company accounts reveal. The BBC reports that John Parkin received a £6m payout before he resigned in May 2007, but the company later began legal action to claim all of the money back. The company's accounts reveal Mr Parkin received £2m in a last-minute deal struck just before a High Court case was to begin last October.
Mr Parkin joined Newcastle Airport as Chief Executive in June 2002 and helped attracted low cost airlines such as easyJet to the hub. When the airport refinanced its debts, which lead to a significant dividends being paid to its shareholders, he was to a receive £6m bonus. However, he was suspended by the airport in March 2007 over what were described as ‘personal contractual issues’. He resigned a few weeks later and took up a similar post at Leeds Bradford Airport, which he still holds.
Accounts for the airport for 2007, released on Friday, reveal it clawed back the majority of the cash paid to Mr Parkin before the case went to court. But they confirm he will keep £2m in the out-of-court settlement - 10 times his salary. The estate of the airport's now deceased finance director, Lars Friis, was awarded £1.8m in the same out-of-court deal.
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