Capita's top bosses' annual compensation packages rose by a fifth last year - at the same time the UK outsourcing giant's IT Services (ITS) workers had their wages frozen and bonuses scrapped.
Hard-pressed ITS staffers, who are thrashing out a pay deal for 2013, were furious when they learned of the windfall enjoyed by execs at the AIM-listed firm. Salary increases for the IT services arm were stalled when the division's performance failed to meet the management's expectations.
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According to Capita's financial report for 2012, the company's "key management personnel" pocketed £7.6m in short-term employment benefits, up from £5.5m a year ago.
Pension contributions fell to £100,000 from £200,000 and share-based payments remained the same at £3.6m; total rewards for the aforementioned "key management personnel" stood at £11.3m, up from £9.3m.
"Where's the austerity?" asked one Capita worker. "Where is the budget tightening that we are told is occurring at all levels?"
A pay review for ITS staff for the coming year was started on 1 April, but if results from last year are any measure, a bumper pay day is hardly around the corner: turnover at the unit fell 0.67 per cent to £633.4m. The chilly economy was blamed for the slip.
We asked Capita to explain why execs were given raises last year but the company avoided the question. A spokeswoman did however confirm the annual pay review for all ITS people is underway.
"It would be inappropriate for us to comment further, given that this is a confidential matter between the company and its employees," she stated. ®