Government will ban the four executives who collapsed MG Rover
By Andrew C., 30 Aug, 2010. 0 Comments
ollapse of MG Rover -- are banned by the government from ever running a company again. According to the 850-page report, the Phoenix Four took £42 million out of the company in pay and in pensions.
They bought the company for just £10 from BMW in 2000, but it collapsed five years later. It is believed that business secretary Lord Mandelson has taken legal advice about the four and will seek to have them banned from being directors of a private or public company for a certain number of years. John Towers, the former MG Rover chairman, Nick Stephenson, ex vice-chairman, Peter Beale and John Edwards received about £9 million. Their chief executive, Kevin Howe, took £5.7m. MG Rover collapsed with the loss of 6,000 jobs amid claims that the car manufacturer was nursing a £400m black hole in its accounts and recriminations that the four businessmen had squandered a £100m sum left to them when BMW sold the company. In a statement, the Phoenix Four said that the report is a "witchhunt" and a "whitewash for the government." They further said that their remuneration was not the cause of the collapse that the “real reason” is that the government failed in its last chance to save MG Rover.
[via autocar]
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