The Association of British Insurers has issued a warning to investors after council catering group, Compass, gave a director two pay-offs. The association issued a ‘red-top' warning, alerting investors after chief executive of the catering firm's Asia and Middle East division, Alain Dupuis, was hired and fired twice. Mr Dupuis was removed from the board and given a severance package in October 2005, only to be re-hired as a consultant on a three-year contract. The arrrangement was terminated last May, when Mr Dupuis was given another severance package. An association spokesman claimed he received a total of £2.4m from both severance deals. ‘We wanted to flag this up because it looks like an oversight by the renumeration committee,' said the spokesman. ‘The committee should have checked the terms of how the director was rehired.' Scolarest, a subsidiary of Compass, provides catering in British and Irish schools and colleges. A Compass spokesman said: ‘It's unfortunate, and the current management is determined that it won't happen again. The chairman has tightened up procedures to avoid a repeat.'