Ascot may face pounds 2m bill for Suter contracts
Wednesday 31 July 1996
The offer document shows all four of Suter's executive directors currently enjoy service agreements which can only be ended by the conglomerate on 36 months' written notice.
As such, the contracts contravene the Cadbury corporate governance code, which expects companies to offer an explanation for any rolling contract extending for longer than a year.
David Abell, Suter's chairman and chief executive, saw his salary rise from pounds 355,000 to pounds 390,000 on 1 May this year, which could mean Ascot has to pay him pounds 1.17m to buy out his contract of employment.
In addition, he owns 3.56 million shares in Suter, worth pounds 7.8m on the basis of Ascot's closing price of 313p last night. He also has options, exercisable at between 99p and 303p, over 564,000 shares and warrants which according to Ascot's offer terms could net him a further pounds 1.1m.
Other directors poised to cash in on the Ascot offer include Anthony Owen, who is paid pounds 165,000, also under a three-year rolling contract. Finance director Alan Hewitt has another three-year roller worth pounds 110,000 a year, up from pounds 99,000 in May.
Robert Morris, deputy managing director of Suter, has been offered a job as a director of Ascot for which he has not been offered a new contract. His existing three-year contract, worth pounds 230,000 a year (up from pounds 200,000 in May), will continue after the acquisition, again in open contravention of the spirit of the Cadbury recommendations.
Suter's board is recommending Ascot's offer, which marks an end to Mr Abell's 18-year involvement with a company he bought into in 1978 while still working for British Leyland, where he had been a main board member at the age of 32.
- 1 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 One Direction: Louis Tomlinson launching his own record label, has already 'signed two acts'
Isis video purports to show beheadings and execution at gunpoint of 30 Ethiopian Christians and destruction of churches in Libya
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Driving while dehydrated can be just as dangerous as drink driving, study suggests
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...