Ownership clause in contract could bring £600,000 payout

The Chief Executive of Cable & Wireless, stands to make £600,000 after working for the company for less than three months.

The technology company could be sold to Vodafone, which would reportedly trigger a clause in Gavin Darby’s contract. In the event of a change of ownership the executive is entitled to receive a year’s base salary “ regardless of whether or not he joins the new firm.

As part of Darby’s remuneration package he was also given a “golden hello” of £600,000 in shares, in addition to the £300,000 worth of shares he gained when the company matched his purchase of the same cost. Since he joined in December, the value of those assets has increased by 35 per cent.

In the event of a sale it is unlikely that Darby will join Vodafone after he leaves Cable & Wireless, as he left the former company after disagreeing with Chief Executive Vittorio Colao.

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Darby will today outline to shareholders how he intends to turn around the organisation, which had three profit warnings last year and a string of chief executives.

Vodafone has not, as yet, made a firm offer to buy the business.