Lomax's pay drops on missed targets

Lomax's pay drops on missed targets

Kevin Lomax, chief executive of UK banking-to-healthcare software firm Misys, saw his overall pay package fall by around 20% for 2005 after the vendor missed performance targets for the year.

Misys' annual report showed that Lomax's base salary rose to nearly £480,000 from £466,000, but his total remuneration was around £803,000, down from £1m a year ago.

Bonus payments for Lomax, along with Misys' finance director Howard Evans and corporate development director Jasper McMahon were based on a scale dependant on the vendor raising its 2006 operating profit by between 1.5% to 12% compared with the previous year. But Misys' operating profit for the year ending 31st May 2006 fell to £56m from £72m a year ago.

An independent committee that is running Misys also decided to defer 50% of bonuses for senior executives for two years, pending continued employment.

Lomax is currently leading a consortium of Misys' directors looking to lead a management buyout of the firm. But he faces competition from a number of other groups including private equity houses Permira and General Atlantic Partners, fintech giant SunGard and US-based Fiserv.

The annual report also reveals that the group paid former banking systems boss Ivan Martin, who left the group abruptly in December, £942,130 in compensation. The package comprises more than £204,000 in salary, a termination payment of nearly £318,000 and £100,000 in compensation for the loss of participation in this year's bonus scheme.

Martin also received a £150,000 pension contribution and an £80,000 payment to cover tax liabilities related to a rented property.

Martin's departure followed a profits warning at Misys' banking division and came three months after investors forced the company to ditch a controversial retention bonus plan that would have seen Martin and Tom Skelton, head of the firm's healthcare division, receive a bonus of £1.2m each to prevent them from leaving the firm if they were not selected to succeed Lomax as CEO.

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