Foster + Partners handed its ex-chief executive Mouzhan Majidi a £2.2 million pay-off following his departure from the AJ100 top-ranked practice earlier this year.
The ‘severance cost’ was set out in the latest accounts filed last week at Companies House for the year ending 30 April 2014.
Majidi left the company after 27 years following a management reshuffle in February, which saw the position of chief executive abandoned and replaced with a new managing partner role.
The architect, who had been at the practice since 1987, was appointed chief executive in 2007.
Speaking about Majidi’s exit, practice founder Norman Foster told the AJ in May: ‘In certain management roles, you really do need a professional and at a certain point of evolution, architects are probably best at doing what they do best, which is designing buildings.’
A permanent managing partner has yet to be appointed, with Matthew Streets currently standing in.
The company accounts also revealed that Foster + Partner’s turnover and profits had both returned to growth
The Group’s revenue rose from £153 million in 2013 to £158.6 million with its gross profit hitting £82.6 million - up from £78.5 million in 2013 - resulting in an operating profit of £27.8million after administrative expenses and exceptional items.
In its previous figures (for 2013) Foster + Partners saw both turnover and profits dip, admitting it had faced ‘difficult trading conditions’ in the early part of the accounting year.
Though the number of staff at the global practice dipped slightly to 1,105, the wage bill rose from £57.9 million in 2013 to £61.6 million
The company, which has been tipped to win the massive Jeddah Metro project, said that its order book now stood at a record £291 million.
Last week Foster’s practice won planning for the new ‘high street’ at Battersea Power Station – the third phase of the £8billion overhaul of the iconic grade II*-listed power station drawn up with Frank Gehry.
Sitting behind the Giles Gilbert Scott-designed landmark, the scheme will create a new pedestrian high street running from Battersea Park Road to the existing power station building.
This phase of the project also includes 1,305 homes. More than 600 of the homes will be provided in a 17-storey Foster + Partners-designed ‘wave –shaped’ building, while five buildings by Gehry will contain 688 homes.
Previous story (AJ 24.02.14)
Fosters’ chief leaves as practice overhauls management set up
Mouzhan Majidi, chief executive at Foster + Partners, has left the practice after 27 years following a management reshuffle
Earlier today (24 February) Norman Foster’s company announced a major restructure which will see the position of chief executive abandoned and replaced with a new managing partner role.
Majidi, who has been at the practice since 1987, was appointed chief executive in 2007.
The practice, which topped last year’s AJ100, is looking for an outsider to take-up the role of managing partner, but in the meantime Foster’s chief financial officer Matthew Streets will fill the role.
In a statement the practice said: ‘Foster + Partners has evolved significantly in recent years and having evaluated the current leadership structure, the board has decided to create a new position of managing partner.
‘The managing partner, who will be recruited from outside the practice, will work alongside the current senior team. This move reflects the successful growth and increasing diversity of skills and research groups that now comprise the practice. We will be searching for an individual with exceptional and proven abilities to help lead the practice through its next phase of evolution.
‘As a result the role of chief executive will no longer exist and Mouzhan Majidi has left the practice.’
Norman Foster commented: ‘This is an important time in the evolution of Foster + Partners, and we believe that the creation of this new role of managing partner will help support the continued success of the practice. The appointment will allow our many talented architects, designers and engineers to focus on what they do best.
‘At the same time, we greatly appreciate the contribution that Mouzhan has made to our practice over the years – first as an outstanding designer and more recently as chief executive. We wish him every further success in the future.’
Interview with Mouzhan Majidi from AJ 28.05.2009
‘Things are not as bad as we thought’
As Foster + Partners’ Battersea office comes into view, I look up. There in the window I see the great man himself, Norman Foster, in a grey polo neck, chin nestled in his hands, looking intently ahead. After a very wobbly start to 2009, which saw his business close two offices and make more than 300 people redundant, could Foster be reflecting on how to save his architectural empire from further shrinkage?
Once inside the studio, I’m greeted by the sharply suited chief executive Mouzhan Majidi, who shows me a board on the wall posting sites around the world where the practice is engaged at the moment. These include towers in Mumbai, a hospital in Bath (the practice’s first such project), the final phase of the More London development on the banks of London’s River Thames, the Walbrook Square development in the City of London, a new terminal at Queen Alia International Airport in Jordan and the Khan Shatyry Entertainment Centre in Astana, Kazakhstan.
I get the message – things are picking up. ‘We’ve just had a good March,’ says Majidi. ‘Discussions are taking place on projects that were on hold, which is a very positive sign. Things are not as bad as we thought they might be. There are good signs of potential projects coming through.’
Majidi developed an early interest in airports and was sufficiently sought after as an architectural student at the University of Strathclyde to be able to choose Foster in 1987 – at the time a medium-sized practice of around 32 people based in Great Portland Street – because he wanted to work on Stansted Airport.
In 2007, Majidi was promoted to chief executive. Since then, he has focused on increasing the practice’s global reach. ‘We are now working in 50 countries and 85 per cent of our work is international,’ he says. Current projects are in Malaysia, China, Latin America, India and North Africa – particularly Morocco, where Foster is undertaking a masterplanning project in the capital, Rabat.
Around 35 per cent of Foster’s fees come from the Middle East, mostly Abu Dhabi. The three offices it maintains there are still growing, with three big schemes on the go – the zero-carbon Masdar scheme (for which phase one has just completed), Aldar Central Market, and Sheikh Zayed National Museum. ‘We require more and more people to relocate to Abu Dhabi,’ says Majidi.
From the sound of things, Majidi hasn’t done much to adjust to the current recession. He says the fee structure hasn’t changed, nor has the practice’s policy of only taking on work that fits its ethos and interests. What about the redundancies? Majidi points out that Foster’s redundancy statistics should be tempered by the fact it has returned to having around 1,000 global employees – the size of the practice just one year ago. And that’s the size it plans to stick to, says Majidi, at least for the coming year. Damian Arnold
Foster & Partners was number 3 in the 2009 AJ100