Police have arrested five former senior executives at Reebok India which is owned by adidas for their role in a fraud, in which they are alleged to have stolen shoes and sportswear worth almost £100 million for up to five years. The former managing director, chief operating officer and three general managers were arrested on Wednesday night in Delhi. They have been accused of a string of offences, including creating fictitious accounts and using phantom distributors across the country. Yesterday, the group said that it intended to improve its risk and compliance programmes to prevent a repeat of the crisis. (The Times*)
Microsoft and HP rapped by US Senate over tax havens
The US Senate has criticised Microsoft and Hewlett-Packard (HP) for their use of tax avoidance schemes. The Senate's Permanent Subcommittee on Investigations said the companies used places such as the Cayman Islands so they did not have to pay US taxes. The committee said that between 2009 and 2011, Microsoft moved $21 billion (£13 billion) offshore, almost half its US retail sales revenue. The panel said the move saved it up to $4.5 billion in taxes on goods sold within the US. Microsoft and HP have denied any wrongdoing. Five of the top 10 companies with the biggest offshore cash balances are in the technology sector. (BBC)
Employees
UK executive pay rises curbed
Big companies are starting to curb executive pay rises in response to shareholder pressure. Advisory firm Deloitte has said in a report that more still needs to be done to improve the link with performance, particularly by reforming bonuses. It found that the median salary increase for FTSE 100 executive directors was 2.5% in 2011-12, down from 3% and bonus payouts were also lower. The findings come after shareholder revolts at companies including Aviva, WPP and Barclays. (Financial Times*, Guardian)
Policy & Research
Businesses call for energy efficiency to be at heart of EU industry plan
Antonio Tajani, EU Commissioner for Enterprise and Industry, has met with more than 30 businesses from the European Alliance to Save Energy, including Knauf Insulation, Philips Lighting, Schneider Electric and Siemens, this week to discuss how the EU can help boost the market for energy efficiency. The companies are calling for the EU to use the industrial strategy, to be launched next month, to send out a strong signal that sustainability will lie at the heart of its growth plans. (Business Green)
Government to incentivise circular economy trailblazers
Innovative ideas around the circular economy will be rewarded under British government plans to accelerate progress in this area. The Government has announced it will invest up to £1.25 million to improve the resource efficiency of UK companies in working towards a low-carbon economy. Tied with this, the Government's Technology Strategy Board (TSB) will run a national competition and offer funding for business-led feasibility studies into the re-design of products, components and systems to retain material within the economy over several cycles of use. (edie)
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