BPP boss' ?738K was 'exceptional'

The head of 바카라사이트 UK's first for-profit university college was paid ?738,000 in one year, while 바카라사이트 co-chief executive officer of 바카라사이트 firm's US owner has a long-term pay deal valued at ?15.8 million.

The pay packets at BPP University College and Apollo Group, its US parent company, are detailed this week in a 온라인 바카라 feature on 바카라사이트 UK's private higher education sector.

BPP students borrowed ?2 million from 바카라사이트 Student Loans Company in fee and maintenance loans in 2010-11, government data show.

David Willetts, 바카라사이트 universities and science minister, has announced that students on designated private courses will be allowed to borrow up to ?6,000 a year in taxpayer-subsidised loans in 2012-13 - up from ?3,375 this year.

Mr Willetts awarded university college status to legal and accountancy education firm BPP in 2010, 바카라사이트 year after it was bought by Apollo Global, a joint venture between private equity firm 바카라사이트 Carlyle Group and US for-profit Apollo Group.

Carl Lygo, 바카라사이트 CEO of BPP Holdings and principal of BPP University College, was paid ?738,000 in 2009-10, accounts show. He said this was "exceptional", with one-off payments accounting for 75 per cent of 바카라사이트 award. It included 바카라사이트 purchase of shares and "one-off incentives" when Apollo bought BPP, he added.

Papers filed by Apollo Group with 바카라사이트 US Securities and Exchange Commission list a 2011 award to co-CEO Gregory Cappelli of $25.1 million (?15.8 million). Of that sum, $620,000 was cash salary and $1 million was a cash "incentive plan", with 바카라사이트 remaining $23.5 million representing 바카라사이트 accounting value of option and share grants over his three-year contract to 2014.

The company's SEC submission indicates that part of Mr Cappelli's long-term pay could be tied to 바카라사이트 future success of BPP. It states that a share component "is appropriate for Mr Cappelli because of his significant involvement with our Apollo Global and AES subsidiaries...Accordingly, we believe that it was important for him to have a more direct equity interest in those subsidiaries that would tie a portion of his compensation to 바카라사이트 success of those entities."

Sally Hunt, general secretary of 바카라사이트 University and College Union, said: "It is completely unacceptable that Mr Cappelli's bonus is based on increasing Apollo's cash flow from taxpayer-funded student loans."

But Mark Brenner, senior vice-president for external affairs at Apollo Group, said that "Mr Cappelli's realised compensation is tied to 바카라사이트 overall success of Apollo Group, including certain financial measures and non-financial measures" such as "student success".

"Apollo Global, of which BPP is a part, represents 8 per cent of Apollo Group's revenue," he added.

A BPP spokeswoman said 바카라사이트 firm's regulations "state that any surpluses made are held in 바카라사이트 UK by BPP University College to be reinvested in BPP University College".

She added: "The [SLC] allocation is irrelevant here, in 바카라사이트 sense that it is not money received by BPP; 바카라사이트 loans are awarded under UK regulations to home students by 바카라사이트 UK government."

john.morgan@tsleducation.com