Compass adds £1m to chiefs’ pensions

The heads of the Compass catering group have enjoyed a £1m plus pension boost, despite the company’s struggles with a £532m retirement scheme deficit for its employees.

The Compass annual report shows that chairman Sir Frances Mackay’s pension rights had increased by £1.23m last year to £16.1m.

Chief executive Mike Bailey received an even larger increase of £1.4m, bringing his total pension transfer value to just over £15m.

Compass said the rise in pension entitlements for its senior directors reflected their age and length of service.

Mackay, who is 60 and soon to be replaced by Sir Roy Gardner from energy supplier Centrica, has been with Compass for 20 years, having started as finance director in 1986. Bailey, 57, has been a director since 1993.

Bailey was paid £1.1m last year and Mackay nearly £550,000.

Compass said in a statement that it was working with pension trustees to try to tackle the deficit.

Compass Group employs 85,000 people in the UK and 420,000 globally.

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