Tay in row over changingdirectors' contracts
Wednesday 03 February 1999
The Leeds-based company - which is facing a shareholder vote to oust the board at the end of the month - angrily denied suggestions that the chairman Norman Stubbs and the chief executive John Swanson had decided to increase the notice period for fear of being forced out by shareholders.
The length of the period is a crucial element in determining compensation packages for ousted directors. Outgoing executives normally receive a lump sum based on their annual salary multiplied by their notice period.
According to documents seen by the Independent, Mr Swanson and Mr Norman Stubbs signed the contracts extending their notice from six months to a year on 10 November.
This was around two weeks after a meeting with Sunley, a family-owned housebuilder with a 10 per cent stake in Tay. At the meeting, Sunley proposed the appointment of two of its nominees to the board in an attempt to improve Tay's performance and revive its flagging share price.
The board's rejection of the proposal led Sunley, backed by Philips & Drew, Tay's largest investor, to call the meeting to oust the existing management.
Mr Swanson yesterday said the changes to the notice period had been agreed in June by the company's remuneration committee. He said the contracts were not signed until November because lawyers had taken a long time to draw them up.
"The insinuation that we changed the contracts as a result of our meeting (with Sunley)... is tantamount to absolute nonsense," he said.
- 1 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...