§ Mr. OttawayTo ask the Secretary of State for Education and Employment if he will make a statement on the reasons for the financial compensation package paid on the resignation of the Chief Executive of SOLOTEC. [83377]
§ Mr. MudieThe Board of SOLOTEC is responsible for setting the terms and conditions of SOLOTEC's staff. I understand that the Board decided last summer to vary the then Chief Executive's terms of employment to incorporate the severance payment he has since received. I further understand that the Board at the time believed that the financial compensation package was necessary to retain the services of the Chief Executive. When the Board subsequently decided to part with the Chief Executive, they decide to make the payment in full.
The compensation package was agreed and paid without the knowledge of the Department. My right hon. Friend the Secretary of State has made clear our view that there are no circumstances in which a payment of this size could be justified for any TEC employee.