Contract changes cost Clayform pounds 500,000

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The Independent Online
TWO directors of Clayform Properties, the company selected by Martin Landau as a vehicle for property development, are to receive pounds 500,000 between them as compensation for changes to their service agreements.

Robert Ware, joint managing director, will be paid pounds 300,000 in exchange for signing a new contract, on a salary of pounds 150,000, under which his notice period will be cut from 36 months to 12. His colleague Dafydd Jones is to get pounds 200,000 as compensation for halving his salary to pounds 50,000 and reducing his notice period from three years to three months.

The compensation payments are disclosed in the document outlining details of the pounds 27.1m placing and open offer announced last week. It also reveals that Mr Landau, deputy chairman, and his partner Anthony Bodie, joint managing director - who sent Clayform's shares soaring when they acquired a 5 per cent stake in the group in June - will receive pounds 105,000 and pounds 150,000 respectively, both under 12-month contracts. But pounds 78,750 of Mr Landau's salary will be paid to Executive Services Overseas which, the document says, provides his services as a consultant outside the UK.

Meanwhile, Plysu, the plastic bottle maker, has paid pounds 316,000 compensation to Richard Gordon, who resigned as its managing director last November.

Mr Gordon, who was paid pounds 110,000 in the year to March 1992, left following a boardroom coup.