By Will Sturgeon, 21 October 2002 12:50
NEWS Barclay Knapp, the boss of debt-riddled cable operator NTL, has left himself exposed to an angry backlash from investors and employees by announcing plans to award himself a $2m pay increase. Last year Knapp earned $838,000 as he steered the company ever further into financial crisis. This year he may receive a package of around $2.8m according to a report in The Times. Under the terms of a new contract, Knapp's basic salary will be $700,000, though he also stands to receive a discretionary cash bonus as much as twice that sum, plus shares worth $700,000. Last year's package consisted of a basic salary of $277,000 plus a bonus of $561,000. The fact that Knapp is being so generously rewarded is likely to meet with an angry reaction from employees and a number of investors. Even if Knapp does take the fall for NTL's perceived poor performance, he still stands to benefit. If he is kicked out before the end of 2003 he will receive a severance pay of $2.1m, meaning that whatever happens he will still be claiming around $2.8m from NTL in the next 12 months.
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