Tomkins faces fury over board bonuses after missed targets

THE Tomkins board is set to come under enewed attack from shareholders and investor lobby groups following the engineering company 's decision to pay bonuses of 244,000 to executive directors despite admitting it had failed to hit its financial targets.

Tomkins 'annual report says the bonuses were paid to "reflect important accomplishments in very demanding circumstances ".It cited "successful disposals ",such as the sale of Ranks Hovis McDougall,as justification for the payments.

News of the windfalls will be a big blow for chairman David Newlands, who received a 50,000 bonus.New-lands has tried to create a perception of a clean start following last year 's outrage over Tomkins 'corporate excesses,which led to the departure of chief executive Greg Hutchings.

Institutional shareholders say the board is likely to be questioned about the bonuses,which breach widely accepted corporate governance standards,at Tomkins 'annual meeting on 7 September.The bonuses were paid for the year to 30 April,in which Tomkins reported a 38%drop in pre-tax profit to 157.5 million and the shares fell from 210p to 150p.

Hutchings quit after it was shown that his wife and housekeeper were on the company payroll.He is suing Tomkins for shares worth 5.7 million.There were also allegations that directors used the company 's flat and four corporate jets,which have since been sold,for personal matters.

Newlands came under fire at the time for not having done more to curb the excesses.Questions about his role followed an Ernst &Young investigation, which cleared Hutchings of any wrongdoing.But it also said any benefits he received had the necessary authorisations and approvals.

Kipling-to-Mothers Pride foods group RHM saw sales for the year to 28 April rise 2.1%to 1.24 billion under the new ownership of private equity group Doughty Hanson.Operating profits fell from 118 million to 107.1 million.

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