Last week we reported on Seamus Keating quitting Logica. As we said “So, for the third time, a man appointed by Logica Group CEO Andy Green with a mission to get Logica’s service delivery operations firing on all cylinders has been diverted to other duties”. All this smells of much more serious problems at Logica – problems we have written about here at TechMarketView continually for years. Problems which we have felt have not been addressed by Logica.
On 5th Apr 12, Nic Fildes at The Times published an article headlined Heir apparent heads for the door leaving rumours of coups and battles in his wake.
Then yesterday we learned that (See FT) Logica bosses turn down bonuses. Apparently, Andy Green was eligible to receive ‘as much as £600,000 in shares’ from their LTIP.
I believe in bonuses. But those bonuses MUST be aligned to shareholder rewards.
I get many emails concerning Andy Green’s tenure as CEO of Logica. A recent one chided me for not updating my 27th Feb 2008 post “The Martin Read Years” where I compared the performance of Logica’s share price since Martin Read joined as CEO in 1993 to his departure in 2007. It is both depressing and well worth a reread.
So, what of “The Andy Green Years”? Logica’s share price was 164p on the day that Green’s appointment was announced. It is now 83p DOWN 49%. Conversely the FTSE SCS Index was 615 on the same day and is 906 now. Ie an INCREASE of 47%.
I do therefore, as a Logica shareholder myself, find it a bit difficult to understand how Green or any of his exec team should be eligible for any payments from their LTIP.