Is NHS privatisation a good idea? “Carillion bosses displayed ‘greed on stilts’, MPs claim”

We are not allowed to see or scrutinise contracts placed by the NHS with private companies. Carillion (formerly Tarmac) had many service contracts with the government.

“… When considering clawbacks – an arrangement for retrieving executive rewards in the event of poor performance after a bonus has been paid – the board opted to rule out extending the use of the device beyond a handful of its most senior directors. The papers show the remuneration committee feared more conservative pay arrangements for particular contracts “would have a detrimental impact on performance”.

The trove of information from the select committees also shows that Carillion’s adviser, Deloitte, said in September that weak provisions didn’t allow any bonuses paid in cash to be clawed back at all.

The remuneration committee extended its clawback conditions to cover serious reputational damage and failures of risk management around that time, however, the MPs said they had seen no evidence to suggest any further attempts were made to return cash from bonuses to the business.

The latest swathe of evidence against the company comes amid the continuing fallout of Carillion’s collapse in January with debts to its 30,000 suppliers worth about £2bn. …”