Distillers chief gets pounds 670,000: Resignation was over management style and approach, says Guinness
Tuesday 19 April 1994
The payment is likely to be scrutinised by shareholders at the annual meeting on 19 May.
Asked to justify how it could pay compensation to someone who resigned, Guinness said: 'He resigned by mutal agreement.
'Mr Davis resigned when it became apparent his management style and approach to the top job in United Distillers did not meet the requirement of the board.'
There were two ways to settle with Mr Davis, said Guinness. 'One way was a one-off lump sum.
'The second was an agreement between the company and Crispin Davis to pay him a monthly amount, which was also the best way to retain him as an employee.'
Mr Davis will remain on staff until next year to finish any outstanding work. Compensation comprises two years' salary worth pounds 560,000 plus pension, car and private health benefits. Mr Davis was on a three- year rolling contract.
The agreement includes a non- competitive clause.
Guinness refused to say exactly why Mr Davis's management style was no longer acceptable but industry observers have said that his marketing approach, notably the reduction in the strength of Gordon's Gin from 40 to 37.5 per cent, was to blame.
Guinness said: 'He was managing director of UD when that decision was taken by the executive board.
'And we would like to point out that the market share of Gordon's Gin is still 48 per cent.'
Guinness is understood to be close to replacing Mr Davis, and an announcement may be made at the annual meeting.
His pay-off was disclosed in the annual report and accounts, which were released yesterday and also showed that Tony Greener, chairman and chief executive, was on a fixed two-year basic salary of pounds 600,000.
With bonuses, Mr Greener received a total of pounds 646,000 in 1993, against the pounds 777,000 paid to Sir Anthony Tennant, former chairman and chief executive, in his last year in office.
Last year's annual meeting barraged the board with questions about pension arrangements for Sir Anthony. They were said to amount to pounds 500,000 a year.
Guinness defused that row by saying it had been contractually agreed when he joined after 34 years' service with Grand Metropolitan.
Grand Met paid an unspecified amount into the Guinness pension fund.
The share price was 482p, up 4p.
- 1 Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
- 2 What supermodels really think about posing in the nude
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Black teen in critical condition after store employee 'shoots him for stealing 79-cent pack of cookies'
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
North Korean defector flees to Finland 'with evidence of chemical testing on humans'
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...