Nominet C-Team Bonuses

[Whois-Search]

I note in the latest accounts (for members to approve) on page 43 are some of the largest bonuses ever seen at Nominet:

https://registrars.nominet.uk/sites/default/files/06.21.18_nominet_ra_2018.pdf

Now I know the table is skewed slightly because the year end has changed and the table is for 18 months:



However even if you go back in time to just 2015:

https://www.nominet.uk/about/corporate-governance/annual-reports/

The C-Team total payments were 253k to 285k including bonus in 2015. In the latest accounts the CEO is paid 306k in a bonus alone !

Also what exactly are the “stretch” targets mentioned on page 12:

The Executive bonus scheme covered the C team, and comprised the Company bonus scheme and additional stretch bonus scheme payments to C team members based on their individual performance against individual stretch objectives agreed by the Remuneration Committee.

Which areas of the company are being grown (stretched) down at Nominet ?

Without this information I’ll be voting AGAINST approving the company accounts.

If anyone wants me to be a proxy at the AGM just let me know and stick my name in the box online.

 

[cm1975]

Blimey!! Any jobs going?

 

[dee]

yeah... sign me up for an application

 

[lazarus]

These figures are grotesque.

 

[RobM]

Should also be a column for 'kickbacks/bribes'. Would no doubt coincide with introduction of .uk and the price hike.

 

[martin-s]

I've raised this before and it continues to disgust me.

 

[Edwin]

Come now, come now... surely you can see how difficult it must be to oversee a business whose main source of income is existing customers meekly renewing the domain names they've had for years?

 

[Whois-Search]

At last year’s AGM I asked why the Nominet Board was costing over £1 million (see the answer at 39 mins):

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What will they say this year when I ask why is the board now costing over £2 million ?

That Nominet is now a “cyber security” company with executive “stretch targets” in that area ?

That the remuneration has been benchmarked against the likes of CI$CO ?

 

[martin-s]

Benchmarking against Companies House would seem more logical.

 

[RobM]

If this company had shareholders who could reap the profits and bonuses were paid on results many, including myself, would openly encourage them to do what they have been doing. However they are sitting on a monopoly with no accountability and absolutely no reason to earn a single cent in bonuses yet still doing things to make loads of money to funnel into other ventures. Why is that?

 

[martin-s]

What Rob said.

 

[Edwin]

Well, UK namespace growth ceased so perhaps one motivation for diversifying is to be able to come up with fresh performance metrics so that the bonus trough gets deeper and deeper.

Especially if they’re predicated on % growth rather than raw income (or profitability) since it’s very easy to
grow a small number by a large percentage.

 

[keys]

I wonder how Cowley feels about this excessive control and pay structure, which she could still be enjoying. The cost of arrogance and lost integrity.

 

[Whois-Search]

I see as Chair of the DVLA....

Cowley is getting 55-60k - see page 47:

https://www.gov.uk/government/publications/dvla-annual-report-and-accounts-2017-to-2018

I see as Chair of Companies House...

Cowley will be getting 25-30k - see page 34:

https://www.gov.uk/government/publications/companies-house-annual-report-and-accounts-2016-to-2017

Those databases are far bigger than Nominet but you can see the difference in salary when it’s Government owned.

Note: she non-executive Chair of the board(s) that means board meetings only 30 days a year (not a CEO)

 

[Nigel]

Well, UK namespace growth ceased so perhaps one motivation for diversifying is to be able to come up with fresh performance metrics so that the bonus trough gets deeper and deeper.

Especially if they’re predicated on % growth rather than raw income (or profitability) since it’s very easy to
grow a small number by a large percentage.

Agree with this. If bonuses were based on Nominet's promotion and defence of the .co.uk domain extension (from which virtually all their money flows) then, in my opinion, they would be due zero. Consider the following factors:

1) Hassle factor - British businesses now having to register two domains instead of one. There was never any real demand for the .uk extension - almost everyone was happy with the .co.uk, .org.uk and .me.uk set up. Poor take-up and freebies simply confirm what everyone on acorn told nominet during the consultation.

2) Value for money - British businesses faced with sharp increase in renewal fees (wholesale price up 50%) and the need to double up on renewals if they register both .co.uk and .uk.

3) Aftermarket values - Domain resale values have bounced back a bit - but there is no doubt that nominet's actions have harmed the .co.uk domain aftermarket. Yes there is a market but not half as strong as it would have been if nominet had not introduced .uk.

4) Ineffective marketing - I suppose it was always going to be difficult to market the .co.uk extension once the .uk was introduced. Which one do we promote today?

5) The ntld fiasco - Not only have they not effectively promoted the .co.uk extension - but they decided to help run competing ntld domains - such as .horse and .vodka - many of these extensions barely have a couple of thousand registrants - enough to give anyone a hangover!