Gravy train rolls on as two bosses share pounds 1.3m pay-off
Tuesday 03 February 1998
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
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Japanese island overrun with cats after population explodes
- 4 Apple and Google users being spied on for a decade because of 'Freak' security flaw
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
Bubonic plague-carrying fleas found on New York City rats
London property boom built on dirty money
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...