Cleanaway boss Vik Bansal loses $2.3m in bonuses amid bullying scandal

Cleanaway chief Vik Bansal has agreed to forfeit bonuses worth $2.3m ahead of the company’s AGM.

Cleanaway chief executive Vik Bansal. Picture: Waste Management Review

Cleanaway Waste Management’s high-profile chief executive Vik Bansal has forfeited $2.3m in performance rights in “an act of contrition” as the company continues to battle the fallout from bullying allegations.

On Thursday, Cleanaway yanked two resolutions in its upcoming annual meeting that would have awarded Mr Bansal 1.08 million performance rights worth $2.3m as part of his long-term incentive plan.

“Mr Bansal volunteered to forgo these rights and the board believes the forfeiture to be appropriate in the circumstances. The withdrawal of these resolutions has occurred by mutual agreement,” Cleanaway chairman Mark Chellew said.

“Cleanaway is committed to doing better as an organisation. While we are disappointed in the events that have led us here, Mr Bansal continues to demonstrate a strong commitment to making necessary changes that will be sustainable over the long term.

“This further act of contrition from the CEO is welcomed by the board.”

Mr Bansal, who was paid a base salary of $1.45m last financial year, agreed to forgo performance rights totalling 1.041 million as part of his long-term incentive plan and an additional 39,316 in performance rights as part of the company’s deferred equity plan.

It follows the company trimming 25 per cent of Mr Bansal’s short-term bonus. Mr Chellew said Cleanaway’s board and management had learned a lesson from Mr Bansal’s alleged bullying.

“Mr Bansal leads Cleanaway with a passion and dedication that has driven exceptional shareholder returns. Learning from this experience will allow him to take Cleanaway forward in its journey and deliver on its full potential.”

The company has been facing growing pressure from funds over the handling of Mr Bansal’s behaviour, with investors taking the admissions and allegations seriously at a time similar scandals have engulfed AMP and QBE.

Eyebrows were raised further this week when the ASX earlier asked why Mr Bansal sold almost $10m worth of shares two weeks before media reports revealed the bullying allegations, which ­fuelled a 15 per cent fall in Cleanaway’s share price.

Cleanaway said that although it was presented with the findings of the investigation on July 1, it did not believe it was material to its share price.

Mr Bansal was appointed the boss of the waste management business five years ago.