'Fat cat' Baltimore bosses under fire from shareholders

Bosses at security company Baltimore were rewarded with salary increases of up to 250 per cent last year, while shareholders ended the year empty handed.

By Sonya Rabbitte, 29 March 2001 14:50

NEWS The details of the hefty salary increases come in a week that has seen Baltimore's share price plunge on the back of a profit warning, and the start of an investigation by the Financial Services Authority into events surrounding the announcement. While Baltimore refused to comment on both the pay rises and the FSA investigation, the 2000 annual report, out today, shows that Fran Rooney, CEO of Baltimore, pocketed £454,000 last year -- a two and a half fold increase on the £187,000 he earned in 1999. Rooney received an annual salary of £262,000 as well as a bonus of £177,000 and benefits of £15,000. Rooney was the only Baltimore executive to receive a bonus last year. But former chairman Henry Becker, who resigned in September, earned £326,000 in 2000, up from £197,000 the previous year. Following his resignation he also received £203,000 compensation for loss of office. Rooney and Becker also made an extra £5.8m each through the sale of one million shares at 580p during the year. Paul Saunders, chief financial officer, who joined the board in December, is reported to have an annual salary of £190,000. However, shareholders received no dividends after losses for the year increased to £94.2m - up from £31.4m in 1999. It looks like 2001 will also be unprofitable for Baltimore shareholders after the company last Friday issued a first quarter profit warning. First quarter revenue is now expected to be $25m, missing analysts $30m forecast. Baltimore may also face a reprimand from the Financial Services Authority if it decides last week's disclosure of price sensitive information to analysts, before announcing a profit warning, breached trading regulations.

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