» ISP News » 

UPD Outgoing Virgin Media CEO Gets GBP58m Payday via Liberty Global Sale

Posted Monday, March 11th, 2013 (2:45 pm) by Mark Jackson (Score 878)
virgin media uk

A regulatory filing has revealed that the boss of UK cable operator Virgin Media, Neil Berkett, will leave the business with the equivalent of £58 million ($86.8m) in his pocket after Liberty Global completes its £15bn acquisition (here) of the group.

The new document reveals that Virgin Media’s potential sale was first debated at a social evening during August last year, at which point the UK firm agreed to consider a proposal but only if the valuation was right; it subsequently rejected several of Liberty Global’s initial offers.

Meanwhile Berkett, whom is currently overseeing the Liberty Global takeover, is also perceived as being responsible for helping to pull Virgin Media out of its 2003 bankruptcy. Since then the cable operator has seen its share price triple and customer numbers rise.

Berkett will walk away with around £13.2m in cash and stocks. On top of that he will also receive other operations and rewards as part of a “long-term incentive plan” that will amount to around £45.2m. The pay-out might seem grotesque to some, especially in this time of austerity and the anti-bonus culture, although Virgin Media and Liberty obviously feel that it’s payment for performance (i.e. a job done well).

However the big questions, such as who will replace Berkett and what does Liberty Global’s takeover mean for the operators existing service portfolio, have yet to be answered. Liberty Global has already remarked about the “significant potential to monetize [Virgin Media’s] customer base, with opportunity to deliver current customers enhanced bundled and premium services“.

ISPreview.co.uk has been promised a full comment from Virgin Media and we hope to add that in soon.

UPDATE 3:02pm

A spokesperson for Virgin Media told ISPreview.co.uk very briefly that it was simply “payment for performance“. The operator explained that Neil’s total is predominantly share rather than cash-based and is the result of his success in turning around Virgin Media.

Berkette, explained the operator, has accumulated shares over the years and, with his belief in the company, he has kept them and is now benefiting from the significant value this transaction will create.

Delicious
Add to Diigo
Leave a Comment
5 Responses
  1. Phil

    Greedy git Neil Berkett, he should give it away to cancer charity!

  2. Kyle

    Astonishing that shares are still touted as being different to money. They aren’t. Shares, once sold, are the exact same thing. When will companies cease the refusal to accept this fact?

    • DTMark

      This seems to be part of the malaise evident in British businesses where CEOs and Directors are, or expect to be, treated like entrepreneurs who formed and built successful companies of their own and importantly at a degree of personal risk, when in fact said CEOs and Directors are often, as in this case, simply employees.

  3. Jon Roberts

    prehaps because the uneducated dont see this? And may look good in the various media outlets rather thatn touting a large sum

IMPORTANT: Javascript must be enabled to post (most browsers do this automatically). On mobile devices you may need to load the page in 'Desktop' mode to comment.


Comments RSS Feed

* Your comment might NOT appear immediately (the site cache re-syncs periodically) *
* Comments that break our rules, spam, troll or post via fake IP/proxy servers may be blocked *
Promotion
Cheapest Superfast ISPs
  • Sky Broadband £20.00 (*28.99)
    Up to 38Mbps, 25GB
    Gift: None
  • Vodafone £23.00 (*26.00)
    Up to 38Mbps, Unlimited
    Gift: None
  • Origin Broadband £23.89 (*31.58)
    Up to 38Mbps, Unlimited
    Gift: None
  • Hyperoptic £26.00 (*35.00)
    Up to 100Mbps, Unlimited
    Gift: None
  • bOnline £26.28 (*40.68)
    Up to 40Mbps, Unlimited
    Gift: None
Prices inc. Line Rental | View All
Poll
*Javascript must be ON to vote*
The Top 20 Category Tags
  1. BT (1804)
  2. Broadband Delivery UK (1272)
  3. FTTC (1147)
  4. FTTP (1134)
  5. Politics (906)
  6. Openreach (860)
  7. Business (794)
  8. Fibre Optic (722)
  9. Statistics (717)
  10. Mobile Broadband (662)
  11. Wireless Internet (599)
  12. Ofcom Regulation (577)
  13. 4G (539)
  14. Virgin Media (524)
  15. FTTH (460)
  16. Sky Broadband (427)
  17. TalkTalk (401)
  18. EE (352)
  19. Security (293)
  20. 3G (255)
New Forum Topics
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Promotion

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms  ,  Privacy and Cookie Policy  ,  Links  ,  Website Rules