The Carillion collapse continues to generate regulatory consequences following enforcement action by the Financial Conduct Authority. The regulator has fined Richard Howson, former Chief Executive of Carillion plc, £237,700 for his role in misleading market disclosures issued before the company entered liquidation.

The FCA concluded that Mr Howson was aware of serious financial difficulties within Carillion’s UK construction division but failed to ensure these were properly reflected in market announcements. He withdrew his challenge to the findings, and the penalty was imposed.

When the Carillion collapse occurred in January 2018, the company entered compulsory liquidation with liabilities reported at approximately £7 billion. At the time, Carillion was one of the UK’s largest construction and outsourcing groups, holding significant public sector contracts and operating across major infrastructure sectors. The failure triggered parliamentary inquiries, select committee hearings and sustained scrutiny of corporate governance, financial reporting and audit oversight. Thousands of jobs were affected and suppliers across the UK supply chain incurred substantial losses.

In the period leading up to the Carillion collapse, Mr Howson’s remuneration reflected his senior position within a major listed contractor. In 2016, his total reported pay package was approximately £1.5 million, comprising base salary, bonus and long-term incentive awards. His basic salary exceeded £600,000 per annum. In early 2018, shortly before liquidation, he was reported to be entitled to a base salary of around £660,000 under exit arrangements, together with associated benefits.

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