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Safestore Installs Payback Clause to Stop Bonuses Based on Failure

In an effort to end a corporate culture that rewards failure, self-storage group Safestore has initiated a clawback clause that will force its directors to pay back any bonuses awarded for profit that later proves to be false.

March 2, 2009

1 Min Read
Safestore Installs Payback Clause to Stop Bonuses Based on Failure

In an effort to end a corporate culture that “rewards failure,” self-storage group Safestore has initiated a “clawback clause” that will force its directors to pay back any bonuses awarded for profit that later proves to be false. Safestore is the first British company to include such a clause, though Prime Minister Gordon Brown has been calling on banks and other companies in a campaign to instate it.
 
The Safestore clause, included in its recent annual report, states the company's remunerations committee can require individuals to repay bonuses or Performance Share Plan awards at any time if the committee feels the payments were "manifestly inaccurate."
 
Safestore also froze the salaries of all executive directors at 2007 levels because of the current economic climate.
 
Source: telegraph.co.uk, Safestore introduces pay-back clause for directors' bonuses

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