Gravy train rolls on as two bosses share pounds 1.3m pay-off

Further evidence emerged yesterday that the City gravy train is still steaming ahead after two top executives received pay-offs totalling pounds 1.3m.

John Garrett, head of Rank's leisure division, is in line for a pounds 500,000 pay-off after resigning yesterday following a boardroom bust-up with Andrew Teare, the group's chief executive. Finn Johnsson, former head of United Distillers, the spirits business of Guinness, has become the latest casualty of the drinks group's mega-merger with Grand Metropolitan. He will receive pounds 800,000.

Rank admitted yesterday that Mr Garrett had left the group following a disagreement with Andrew Teare. Mr Garrett said: "It was a question of strategy. I did not believe in some of the things that Rank was doing and the direction the company was moving.

"As a shareholder I am concerned about Rank's performance and dissatisfied with the share price," he added.

Mr Garrett declined to comment further about his disagreements with the board. However, City observers believe that he became increasingly concerned that Mr Teare's investment strategy was misguided and plans to revitalise the Butlin's brand were doomed to fail. Before Andrew Teare's appointment two years ago, Mr Garrett had been seen as front-runner to replace Michael Gifford, the group's former chief executive .

Sir Denys Henderson, chairman of Rank, said he had backed Andrew Teare in the boardroom battle. "The idea that this was a boardroom coup is a load of codswallop. As far as I know no other senior management are about to leave."

Sir Denys claimed that Mr Garrett was against Rank's plans to sale and lease back some of its property and rejected strict targets for a 15 per cent return on new investment. Rank also claims that Mr Garrett was unhappy with the amount of investment made available to the leisure business, a fact that Mr Garrett strenuously denies.

Mr Garrett is considering launching a management buyout for the leisure division.

Mr Johnsson, who joined Guinness in 1994 from Euroc, the Scandinavian building products group, lost out in the battle to become head of Diageo's new spirits business to Jack Keenan, former head of GrandMet's drinks division. Mr Johnsson was known for his dynamism and boundless enthusiasm for the job. But, Mr Keenan is understood to have been given his new role due to his skills in handling mergers which he proved when integrating Kraft and General Foods.

Rank's shares rose 12.25p to 312p and Diageo's fell 2p to 552p.

Investment column, page 24

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Recruitment Genius: Web Developer - PHP

£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...

Day In a Page

Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

Homeless Veterans appeal

Homeless in Wales can find inspiration from Daniel’s story
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Pot of gold: tasting the world’s most expensive tea

Pot of gold

Tasting the world’s most expensive tea
10 best wildlife-watching experiences: From hen harriers to porpoises

From hen harriers to porpoises: 10 best wildlife-watching experiences

While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

'I don’t want just to hold tackle bags, I want to be out there'

Nick Easter targeting World Cup place after England recall
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore