Former Wates boss handed £1m compensation payment in wake of departure last year

Wates handed its former boss David Allen nearly £1m in compensation last year after he left the company amid reports of a boardroom bust-up.

According to the contractor’s full accounts for 2022, an unnamed executive, believed to be Allen, was handed £992,000 in “compensation for loss of office”, on top of a £491,000 salary.

Allen, who is now chief financial officer at Mace, became Wates’ chief executive in 2018 but left the company suddenly last July.

Neither he nor Wates cited a reason for his departure but it was believed to be a disagreement over the future direction of the business.

At the time, group chairman Sir James Wates praised Allen’s “intelligence, commitment and compassion” and thanked him for his contribution to the firm.

Chief financial officer Philip Wainwright took over as an interim before eventually being replaced by Eoghan O’Lionard, previously a chief executive at a listed marine services firm, in February.

Wates’ turnover hit a record £1.89bn last year, although pre-tax profit was down 6% to £33.7m.

O’Lionaird told Building last month that battery manufacturing plants could be a growth market for the firm, having recently begun work a £500m gigafactory in Sunderland – its largest ever job.