Cheap options for Montague
Wednesday 16 February 1994
But in a move likely to cause controversy, he will be granted options over two million shares at 20p and more than a million at 65p to replace existing option agreements.
Tiphook's shares fell 9p to 58p yesterday as the City digested the interim results, which showed a loss of pounds 180m for the six months to 31 October after exceptional items. At that price, Mr Montague's 20p options would be worth pounds 750,000.
Mr Montague, who stepped down as chairman on Monday, earned pounds 816,000 last year.
The deal also provides for a minimum bonus of pounds 250,000 for him over the next five years, even if the reconstructed Tiphook does not make any profits. He will receive a further pounds 250,000 after 18 months for signing a covenant that prevents him competing with Transamerica in the container leasing market.
One analyst said: 'Shareholders who have seen the value of their investment in Tiphook plummet will not be impressed to see the man who presided over the decline rewarded in this way.'
A Tiphook spokesman said the package was a lot less than Mr Montague could have had under the terms of his three-year contract.
Two directors who have agreed to resign after the rescue is completed have agreed compensation of more than pounds 1.1m in total.
The reconstruction package, which depends on the sale of Tiphook's container division, will be voted on by shareholders at an extraordinary meeting on 10 March.
But the company is still teetering on the brink of extinction. Its bankers have agreed to provide facilities until 1998, provided the container division sale goes through.
However, the group's auditors, Touche Ross, heavily qualified the accounts, warning that there was doubt over the company's ability to continue as a going concern.
Richard Bernstein, of City Marketing Financial Analysis, said the rescue document was the most remarkable he had seen.
'It is hedged with so many caveats, and depends on so many assumptions, that it leaves the impression that what's left of the company will be hard pressed to make any money,' he said.
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 3 A pint of water every day is the key to losing weight, scientists say
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Nazi gold train: 'Significant' discovery made in Poland
Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
TTIP controversy: The European Commission and Big Tobacco accused of cover-up after heavily redacted documents released
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...