Ex-Marconi boss's ?1.2m pension fight

Ousted Marconi chief executive Lord Simpson is battling to secure a £1.2 million 'pension' payment from the stricken telecoms company he left two weeks ago, while also trying to safeguard part of his £1m initial payoff.

Simpson is understood to have held talks with acting chairman Derek Bonham last week, as well as consulting Marconi's personnel director Rob Meakin.

Bonham has said that he is against ousted Marconi directors receiving big payoffs when they leave.

But sources indicate that Simpson is determined to keep the £1.2m, paid into a funded unapproved retirement benefit scheme (Furbs) since 1997, although Marconi has resisted these demands.

However, it is believed Simpson is prepared to bargain over his £1m payoff to secure the Furbs payments - revealed in The Observer last week - possibly agreeing to a 50 per cent cut.

One source said: 'George is determined to have a solution. I suspect the solution will be that they pay up on the Furbs entitlement, and he accepts a reduction in the payoff. I think he will settle for half of that.'

However, it is understood that Simpson is not prepared to abandon the entire £1 million of his payoff.

Simpson's stand contrasts with that of former chairman Sir Roger Hurn, who left Marconi at the same time, and has waived a £300,000 payment to which he is entitled. Marconi is trying not only to resolve Simpson's position but also that of former finance director John Mayo, who left the company in July after it issued one of a string of profits warnings.

There has been pressure from shareholders, from the Association of British insurers and from the Government, for Simpson to give up his payoff.

Last week Trade and Industry Secretary Patricia Hewitt said that directors who leave companies that have lost investors their money and employees their jobs should 'share the pain'.

Under Simpson, Marconi cut 10,000 jobs and has seen its shares slump from a high of £12.50 to 32p at Friday's close. The company, now headed by chief executive Mike Parton, headed off threats of industrial action over redundancies in talks with unions on Friday.