C&W boss paid £2.2m for leading revival

The new boss of Cable & Wireless was paid £2.2m (€3.3m) in the last financial year after leading a trading revival at the telecoms group.

Francesco Caio, who took over as chief executive in April 2003, received a basic salary of £700,000 (€1.1m) and took home another £1.2m (€1.8m) in bonuses for meeting performance targets and to cover entitlements in his last job.

His pay packet was further lifted by benefits worth £184,145 (€277,384), including a sum to help relocate his family from Italy, while 2.7 million share options – which can be exercised at 103.7p in two years’ time – were also awarded.

Results for the year showed the benefits of a recent restructuring drive with losses down to £224m (€337.5m) from £6.37bn (€9.6bn) a year earlier. Shareholders were also buoyed by a resumption of dividend payments.

The company admitted it was seen as “down and out” 18 months ago but had revived to the point where it had a “prosperous future” and avoided a decline in UK revenues for the first time in three years.

C&W said basic salaries for Mr Caio and his executive team would remain unchanged this year, although performance-related bonuses and share options could still substantially boost earnings.