Co-op deal rewards Hobson directors: Bonuses of pounds 250,000 in remuneration package

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The Independent Online
BONUSES of pounds 250,000 and 120 per cent salary increases are being awarded to two directors of Hobson, which last week struck a pounds 111m deal to buy the Co-op's food manufacturing businesses.

The directors are Andrew Regan, chief executive, and Peter Hallett, finance director. Mr Regan is the son of Roger Regan, who is currently nursing Spring Ram, the kitchens and bathrooms group, back to health.

The two will each receive a pounds 250,000 bonus when service contracts paying pounds 68,000 a year are terminated on completion of the deal. The bonus includes compensation for terminating an agreement attracting payment worth 2.5 per cent of the rise in Hobson's net asset value from less than pounds 2m now to more than pounds 75m after the deal.

Their new contracts are worth pounds 150,000 a year each, with a performance-related bonus of up to 100 per cent of salary. The two men can also take up options over 1 per cent of Hobson shares at 7.5p each.

Brian Kane, chief operating officer, who will become an executive director, will receive a one-off bonus of pounds 50,000. His new contract provides remuneration of pounds 150,000 plus a possible 100 per cent bonus.

Directors' emoluments for 1994 will total pounds 625,000, against pounds 193,000 in the nine months to last December and pounds 71,000 in the year to March 1993.

Hobson is issuing 296.3 million shares at 27p to help to fund the purchase of FMG, which supplies own-label brands to the Co-op.

Hobson shares were suspended at 27p, a price valuing it at pounds 25m.

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