GOLDEN handshake bus firm bosses have been stripped of annual bonuses worth more than £200,000 in total after a boardroom row.
Edinburgh City Council is axing its senior management bonus scheme at the publicly-owned Lothian Buses, sister firm of Edinburgh Trams, which has been operating in the shadow of an embarrassing public tussle among managers.
The directors Ian Craig, Norman Strachan, Bill Campbell and Bill Devlin, who each earned between £190,000 and £270,000 in 2013, are due to leave the company on notice of two years following the debacle, which led to the resignation of chairwoman Anne Faulds.
The tussle was played out in public after a series of confidential leaks ended with allegations made against Mr Craig, but an investigation cleared him of any wrongdoing. It means the four men will not receive their final bonus.
It is understood a fifth, former human resources executive Guy Hughes, was handed an exit package totalling £85,779 in February.
Bonuses he would have been due would have taken the total pot for the executives close to £250,000.
A source said the bonuses were considered inappropriate in a modern publicly-owned firm.
The company has been mired in the dispute among its managers for more than a year.
Worker Director Owen Boyle quit the board of Lothian Buses over what he described as "cowardly behaviour" relating to a row involving colleagues.
That move came after months of in-fighting among the four that led to handshake deals and an overhaul of the top flight at the company involving then interim chairman, Tony Depledge and general manager, Jim McFarlane.
Tom Norris, outgoing director and general manager of Edinburgh Trams who is joining Abellio, was given a £20,000 bonus despite leaving after just over two years in the job.
The firm has updated its code of conduct and changed its policy to ensure all gifts and hospitality over £100 are recorded.
It replaced a £300 threshold that was in place prior to January, after a row over a male-only event some directors attended.
Mr Campbell, Mr Devlin and Mr Strachan earlier came under fire after travelling to London in December for the annual men-only Transport Golfing Society dinner.
The dinner was paid for by a bus manufacturer and was the subject of a review.
The council was prompted to shake up the management team with a "phased approach to resolve the challenges of the dysfunctional executive director team and secure leadership and control".
Part of the overhaul was to introduce new non-executive director positions on Transport for Edinburgh's boards as it moves to stabilise management of the bus firm.
A new system of meetings between the bus and tram boards is being planned to foster "strong liaison" between directors of both those and the umbrella firm.
As the row reached a crescendo police were asked to investigate an anonymous letter making a wide range of accusations including claims of fraud related to Lothian Buses.
In internal investigation found no case to answer and the police probe has also now concluded without further action.
A Police Scotland spokesman said: "Police in Edinburgh carried out enquiries into the content of a letter, which made allegations of fraudulent activity. These enquiries have now concluded and no further police action will be taken."
Separately, unaudited accounts showed that Edinburgh Trams ran at a loss of £564,000, which was a lower loss than anticipated.
Councillor Lesley Hinds, Chair of Transport for Edinburgh which oversees the trams and Lothian Buses, said: "A couple of years ago councillors asked the Chief Executive to express their concern to Lothian Buses' Board regarding the level of remuneration and bonuses for their senior executive team.
"All elected members will welcome their decision not to pay bonuses for 2014, which I believe offers far better value to the Edinburgh tax payer, particularly as stability is restored to the company's management.
"The bonus paid to Tom Norris covers both 2013 and 2014, which is a fair reflection of his contribution over the last two-and-a-half years."
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