SCOTLAND'S largest music venue and conference centre is in crisis amid fears of high-level resignations due to rows with its majority shareholder over pay.
On the eve of the Scottish Exhibition and Conference Centre's busiest ever year, and just months from the scheduled completion of the associated Hydro Arena, executives have been told of the intention to slash their bonuses and keep pay rises for staff in line with that of the public sector.
A rescheduled meeting of its remuneration committee will be held today to determine whether the SECC will be engulfed in the worst turmoil in its 30-year history or its top team will continue, albeit with significantly curbed pay.
Sources within the venue have told of potential consequences of the Hydro's completion if any, or all, of the non-executive directors quit, as well as the plans for the SECC as a core venue and base during the 2014 Commonwealth Games.
Glasgow City Council, which owns over 90% of the SECC, wants top-tier salaries pegged back after a probe into a bonus culture at the venue criticised directors for paying themselves extra for doing their basic job.
The authority ordered accountant Deloitte to review the system of lucrative pay incentives dating from 2005, the findings of which included the SECC's chief executive John Sharkey receiving £85,000 on top of his basic salary of £190,000 despite not meeting a quarter of his targets, as he had had a "very testing year".
However, the last meeting in early March to thrash out agreement descended into disagreement, and if today's session fails to reach a satisfactory conclusion the council will look to impose the 1% pay rise.
A further internal meeting of the council is already scheduled depending on today's outcome.
But one source said: "Some non-executive directors more than others are digging in here. And there's talk one, some or all could walk. These are serious players in the field of conferences and events and it would be a total blow to the SECC at this delicate stage.
"When you're in big projects like the Hydro, with any amount of legal claim and counter-claim it's crucial you have the same team in place.
"You also need to keep people motivated in this vital year for the SECC."
The pay talks will focus on whether the rank-and-file staff will receive either 1%, the same as those in the city council and across local government, or 2.5%, as championed by the venue's management.
It will also see the bonuses reduced, although core salaries of the executive team will stay the same for now. But even slashing bonuses will see executives lose tens of thousands.
The current pay deal expires in 2014 and is also up for discussion.
The Herald understands the transport pioneer and former president of Virgin Galactic Will Whitehorn has been the most vociferous opponent of the council's position on pay, while Sir Ian Grant, former Scottish Tourist Board chairman, is equally opposed and is due to retire from the SECC within the next year.
The other two non-executive directors are Gary Hughes, former finance director of the company which owns broadcaster STV, the chief financial officer of bingo, casino and bookmakers chain Gala Coral Group, and a non-executive director of Sainsbury, and Keith Wyness, who has been involved in Aberdeen and Everton football clubs, as well as promoting the 2000 Sydney Olympics.
A spokesman for the council said: "We cannot comment ahead of either today's remuneration committee or the executive committee on Thursday."
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