Ferguson Marine: Board give £100k+ CEO payoff despite unanimous sacking

Loss-making Ferguson Marine, which relies on public funds had brought in a new external public relations agency that has been handling the scandal over the 'unacceptable' public spending of the Water Industry Commission for Scotland to deal with the departure of Mr Tydeman. They had consistently rebuffed questions over whether there was to be a pay off or how much it would be.

It has now been confirmed to the Herald that the board of Ferguson Marine (Port Glasgow) voted on whether to terminate David Tydeman's contract and that the agreement was "unanimous".

And the £232,500-a-year executive is receiving the equivalent of six months’ salary plus outstanding holiday payment as part of an agreement over his sacking.

READ MORE: ScotGov to 'leave no stone unturned' to save Ferguson Marine

The board say that the six months was his "contractual notice period".

Ferguson Marine deny that it is a 'golden goodbye' saying it was the payment was as per his employment contract.

Ministers said after being quizzed by the Herald that the amount of entitlement to be paid "has not yet been finalised by the employer, or notified to the Scottish Government".

Mr Tydeman was fired on March 26 after a tumultuous two years at the helm of the nationalised shipyard after he told ministers there would be even further delays to two long-delayed and wildly over budget ferries Glen Sannox and Glen Rosa being built for state-owned ferry operator CalMac at the Inverclyde yard.

Andrew Miller, the chairman of Ferguson Marine said in confirming that departure of Mr Tydeman that the company needed "strong leadership" to ensure its long-term future.

It was not until April 30 that Mr Tydeman's position as a director of the nationalised shipyard firm and its subsidiaries was officially terminated.

It has further emerged that board members were concerned two months before Mr Tydeman was sacked that they were "substantially adrift" from the latest budget for the delivery of the two ferries.

A document detailing one discussion seen by the Herald says that Mr Miller had asked Mr Tydeman what assurance he could give over the rising costs while another director Chris Mackay said it was an "uncomfortable place to be in".

Another director Dr Stuart Smith, with over 35 years experience in the oil, gas and subsea contracting sectors talked of "several concerns" over the financials and sought a considered two week response to what was happening "given the gravity and importance of the situation".

Another director Simon Cunningham even said that the key thing about the figures was "how reliable they are" and that a future explanatory letter to MSPs and ministers "must contain something that we can, with integrity" show that they were "more confident in the figures we are providing and that they are much more accurate and reliable than in the past".

The details were to be provided by Mr Tydeman.

And another director John Petticrew, who would become Mr Tydeman's replacement at the Ferguson Marine helm suggested the biggest issue was that they had underestimated the impact of the use of the so-called green fuel LNG on the project.

Glen Sannox and Glen Rosa were to be able to operate on LNG which the Scottish Government ferry owners Caledonian Maritime Assets Ltd said was "significantly cleaner and will help to reduce emissions to meet ambitious Scottish Government targets".

They were hailed as a step towards a greener future for Scotland's state owned CalMac ferry fleet as they were to be the first UK-built ships capable of running off LNG as well as conventional diesel.

CMAL has previously said that the two vessels would reduce the carbon footprint of the ferry fleet by 25 per cent.

The board also said there was an issue with getting certified LNG crew because there were not many people in the marketplace.

The ability to commission LNG for the ship, requires certified crew.

Mr Tydeman has said he does not understand why he had his contract terminated saying he was proud of what he had achieved.

READ MORE: Auditors register 'significant uncertainty' on Ferguson Marine future

Ministers had expressed regular concern at increases in costs and delays in the chief executive's quarterly updates before he was eventually fired.

Costs continue to soar over new ferries Glen Sannox and Glen Rosa being built at the Inverclyde yard, which were due online in the first half of 2018, with one initially to serve Arran and the other to serve the Skye triangle routes to North Uist and Harris, but are at least six years late, with costs expected to be quadruple the original £97m contract. It has been confirmed that both are now to serve Arran.

Glen Sannox, was launched by Nicola Sturgeon nearly seven years ago and is now expected to miss the summer season.

Glen Rosa was meant to be delivered to CalMac in August 2018, but that the latest arrival pushback has it not due in service till November, next year.

The dates of arrival have been constantly in a state of flux as their construction has been plagued by design challenges, cost overruns and delays.

In the midst of the delays and soaring costs, Ferguson Marine under the control of tycoon Jim McColl fell into administration and was nationalised at the end of 2019 with state-owned ferry and port-owning agency Caledonian Maritime Assets Ltd and the yard's management blaming each other.

Mr Tydeman was replaced by Mr Petticrew, a fourth generation shipbuilder as chief executive who is based in Canada. It was confirmed he will be temporarily re-locating to the UK for the new job.

He has since confirmed that the target for the Glen Sannox handover for use by ferry operator CalMac will not be until July 31 - after more months of delay. Once handed over, there will be a two month period where CalMac will carry out crew familiarisation and network trials.

Mr Petticrew admitted that the installation and commissioning of the 'green fuel' liquefied natural gas (LNG) on the two ferries remains "particularly challenging".

He said following his appointment, the team has now determined a "more focussed approach" to the completion of the Glen Sannox.

A ferry user group official said: "All islanders have ever wanted is a clear vision of when new ferries will be up and running but despite now three changes of leadership at Ferguson Marine and now one at CalMac we have not had that.

"If people were less concerned about bonuses and payoffs for failure and more concerned about delivering our ferries, our world would be a much better place.

"For me, it is entirely justified to call this a golden goodbye as this was a payment made after a sacking and are the costs of termination."

Mr Tydeman was at the centre of controversy when the Herald revealed last year he got an estimated £20,000 golden hello while standing to gain up to £80,000 in bonus payments.

The Ferguson Marine Glasgow (Port Glasgow) chief executive received £1000 a day for just over eight weeks work at the start of his time with the nationalised company thanks to a salary boost.

It led to new concerns about the bonus culture at the shipyard firm delivering two long-delayed ferries which has received over £450m of public money and led to new calls for a public inquiry.

The chairman of FMPG said in the summer of last year that controversial bonuses were expected to continue to be paid - despite the First Minister saying at the end of April, last year he did not expect them to continue.

A secret bonus bill to Ferguson Marine management reached £134,218 over two years, while the two ferries remained undelivered.

Mr Tydeman received around £57,500 for the first two months of his appointment - over £20,000 more than the pro-rata rate.

But it was confirmed that the extra payments in terms of salary were given in the form of "recruitment costs" and a relocation package for Mr Tydeman establishing a base in the local area.

The bonus culture concerns came in the wake of an outcry over the more than £2000-a-day remuneration, made up of fees and expenses given to Ferguson Marine's previous Scottish Government-appointed turnaround director Tim Hair who left his post in February, 2022.

The Scottish Government defended the payments to Mr Hair as being "in the middle of the industry norm".

Mr Tydeman's 30% bonus package had previously been kept secret by the shipyard firm, and blocked by at least one Freedom of Information request.

But a confidential memo from the Scottish Government's commercial interventions department on Mr Tydeman's remuneration package states that recruitment consultants had advised them that elements of his pay package including relocation allowance and bonus arrangements were "expected" for an "appointment of this kind".

It had already been confirmed that £87,000 had been paid to certain members of the management team for performance in 2021/22 with a further £47,000 more expected in 2022/23. And the Ferguson Marine chairman has said that it is perfectly reasonable that performance payments continue to be paid into this financial year.