Energy Group bosses could leave with pounds 1m
Tuesday 01 July 1997
The formal offer document to Energy Group shareholders yesterday showed Derek Bonham, executive chairman since the group's demerger from Hanson earlier this year, would emerge with pounds 1,491,419. John Devaney, chief executive of Eastern, the regional power company, would leave the group pounds 1,159,995 better off.
The document revealed that the normal one-year notice period for executives leaving the group would be extended to two years in the event of a takeover, giving Mr Bonham twice his pounds 450,000 salary as a pay-off.
He will also be entitled to receive a long-term share bonus in cash, worth pounds 443,566, whether or not he stays with the combined group. In addition Mr Bonham will make another pounds 147,853 from Energy Group's controversial Special Addition Bonus Scheme, created at the flotation because of the three-year delay in payouts under the long-term plan. Mr Bonham also owns shares in Energy Group worth pounds 627,000 at PacifiCorp's 690p bid price.
Mr Devaney, 50, will see his pounds 350,000 double to pounds 700,000 if he leaves the company, but will make pounds 459,995 from the two bonus schemes whatever happens. He owns shares worth pounds 34,500 in Energy Group at the offer price. As chief executive of Eastern he received a package worth pounds 1.3m before tax after the 1995 takeover by Hanson.
The offer document said both executives had been invited onto PacifiCorp's board if the deal went through, although detailed terms had not been discussed and both Mr Bonham and Mr Devaney have not yet decided to do so. Mr Devaney has indicated he may leave the company and seek another job outside the utility sector.
Another director to share in the windfalls is Eric Anstee, Energy Group's finance director, who could walk away with a pay-off worth pounds 500,000.
- 1 Scarlett Johansson new band 'already hit with legal complaint' from another The Singles
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Husband and wife die holding hands within hours of each other after 67 years of marriage
Mohammed Emwazi: Nine things we know about Isis militant 'Jihadi John'
What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
'Jihadi John': Mohammed Emwazi – from British computer programmer to Isis executioner
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
This is what it's like to be dead, according to a guy who died for a bit
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...