Global architect rewards employees as firm breaks the 拢200m turnover barrier in annual results
Global architure practice Foster & Partners paid staff more than 拢11m in performance related pay last year as the firm posted a record turnover, its latest accounts reveal.
The firm鈥檚 directors shared 拢3.2m in performance related pay with this figure included in the overall 拢11.6m it shelled out in bonuses in the year it bought a huge stake in the business back from private equity firm 3i.
Its report and accounts filed at Companies House show that in the year to April 2015, revenue at the UK鈥檚 biggest architect broke through the 拢200m barrier for the first time, rising 30% to 拢205m, while underlying profits were up 44% to 拢51.7m.
The firm鈥檚 full pre-tax profit was 拢229m because of the exceptional impact of the financial restructuring carried out during the year, with the bulk of this coming from 拢212m of 鈥渇inance income鈥 gained when it bought back the 40% stake that had been held by private equity firm 3i since 2007.
Foster鈥檚 said it was also treating the bonus payments as an exceptional item along with a 拢2.7m bill it racked up as part of the financial restructuring.
Chairman Norman Foster said: 鈥淸The 3i] initiative has served us well and last year marked another stage in our evolution when we bought out the share and have since redistributed it across the practice.鈥
He added: 鈥淭he motivation for all of us is in the challenge of design but the outcome in material terms for this financial year is a record turnover and related bonuses shared across the entire team.鈥 Its wage bill for the year went up to 拢65m from 拢53m.
The salary of the highest paid director, who is not named but is thought to be Foster himself, jumped from 拢1.2m in the previous year to 拢1.9m this.
Foster鈥檚 biggest market is the Middle East 鈥 where it has won the scheme to design the stadium which will hold the final of the 2022 World Cup in Qatar 鈥 followed by North America with the pair accounting for half of its business last year. Its work in Asia slipped slightly but revenue more than doubled in South America to 拢18 million while business in the UK was brisk with turnover up 42% to 拢27.7m.
The number of people working at the practice at the year end was just under 1,300 but this has since increased further to more than 1,400. It said that 40% of employees are women while the average age of staff is 34.
The accounts were signed off last month by Matthew Streets, who remains the acting managing partner. He took over that role following the departure of former chief executive Mouzhan Majidi who was handed a 拢2.2m pay-off by the firm when he left the business in early 2014. Iranian-born Majidi is now the chief executive of Zaha Hadid Architects.
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