C&W bosses could get limitless bonuses

Cable & Wireless courted further controversy over executive pay today as it proposed scrapping the £20m cap on individual bonus payouts.

The telecommunications company wants to axe the multi-million windfall maximum, effectively offering its 60 executives unlimited rewards in a bid to drive the group’s turnaround.

C&W is also asking shareholders to back plans to award chairman Richard Lapthorne 5.5 million shares as part of a three-year performance-related incentive scheme, which could be worth more than £10m.

The move, which comes just a year after the launch of the incentive schemes sparked a row with investors, has received widespread criticism ahead of a shareholder vote on July 20.

Shareholder organisation Pensions Investment Research Consultants said it was “alarmed” at the proposals.