Disgraced MG Rover chiefs bank an extra £11m

Posted on November 24th, 2009 by News in Manufacturers, News

The five disgraced former directors of failed carmaker MG Rover are to receive an £11 million-plus payout.

Their windfall will bring to £42m the amount of money they have extracted from the collapsed company in one of Britain’s biggest business scandals.

The five – John Towers, Nick Stephenson, John Edwards, Peter Beale and Kevin Howe – will share the payout from the winding up of MGR Capital, a car finance operation that was kept separate from the rest of the group.

Mr Towers, Mr Stephenson, Mr Edwards and Mr Beale are expected to collect about £2.5m each from their latest pay day. Mr Howe, who was chief executive, is expected to collect about £1.4m.

The sums are said to have provoked fury in Birmingham, where MG Rover was based until it collapsed in 2005.

Lloyds Banking Group, in which the government holds a 43% stake, owns half of MGR Capital and is also in line for an £11m-plus windfall.

Source: Sunday Times

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