Backhouse did not receive compensation for losing post: Henderson annual report reveals contrast in directors' pay-offs
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Your support makes all the difference.DAVID BACKHOUSE, the former chairman of Henderson Administration, the fund management group, quit his pounds 117,000-a-year job last November without receiving any compensation for loss of office, according to the group's annual report published yesterday.
Mr Backhouse resigned after the Bank of England blacklisted him because of his role as managing director of Authority Bank, a small bank that went into administration in December 1990.
The absence of any compensation for the chairman was in stark contrast to the pounds 417,000 paid by Henderson to three other directors last year for loss of office. The company said the payments to David Gibson, Robin Berrill and Hugh Priestley included pension scheme contributions.
The blacklisting had nothing directly to do with Mr Backhouse's role at Henderson, because the Bank of England's ability to bar directors under the Banking Act extends only to banks. Shortly before his departure from Henderson, Mr Backhouse also resigned as a director of TSB. He said at the time that he intended to respond fully to 'regulators' concerns', but he believed it was not in the best interests of Henderson for him to remain as chairman.
Ben Wrey, his successor as chairman, said: 'It is a sensitive area when someone leaves unexpectedly. It was in no way connected with Henderson but was driven by the Bank of England. I don't think there was any suggestion of compensation. David never suggested any.'
Authority Bank went into administration with liabilities of more than pounds 40m and assets of pounds 35m. Its creditors were said to be mostly Latin American depositors. Payments have been made to UK depositors by the Bank of England's Deposit Protection Board.
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