“The move to privatise QinetiQ was effective in safeguarding the viability of a business of national importance and secured half a billion pounds for the taxpayer. However, I believe more money should have been secured for the public purse.
“And it is of concern that the Ministry of Defence did not seek specialist advice on the incentive scheme, which resulted in the top ten managers owning shares worth £107m. This level of return exceeded what was necessary to incentivise management.
“The MoD must now be proactive in managing the remaining risks to deliver the long term value for money from the deal.”
23 Nov 2007