Financial Times: Ousted Rexam executive stands to receive £2.5m: “Rexam, the consumer packaging group, is to pay Stefan Angwald, its former chief executive, up to £2.5m after he worked only four- and-a-half months in the job.”: “The Rexam payment comes after Jeroen van der Veer, chief executive of Royal Dutch/Shell, was paid nearly €2.65m (£1.82m) in 2004 - a year in which the Anglo/Dutch oil and gas group had to cut its figures for proved reserves four times. Mr van der Veer received a 90 per cent bonus on his salary at the year end.” (ShellNews.net) 7 April 05
By Salamander Davoudi
Published: April 7 2005
Rexam, the consumer packaging group, is to pay Stefan Angwald, its former chief executive, up to £2.5m after he worked only four- and-a-half months in the job.
Mr Angwald, who was on a two-year contract, was swiftly ousted by the Rexam board last October because of a personality clash with senior executives.
Rexam's annual report reveals that, since his departure, Mr Angwald has received almost £1.4m in payments. This figure includes a salary of £564,000, a £237,000 bonus, £337,000 in pension supplements and other benefits and £230,000 in compensation for loss of office.
From this year, he will also receive an additional £100,000 a month until October 2006 unless he secures another job. Since the start of the year he has been paid almost £300,000 under this agreement. If he does find a job for less pay, Rexam will pay the difference.
One analyst said: "Wow, wow, wow - what a fantastic deal. Let me have a piece of that. I find this pay-out incredible, and I am speechless. It is difficult to see what anybody could have done for that amount of money. A two-year contract is a great thing to get. There was obviously a contractual technicality otherwise they would not now be paying him £100,000 a month. There are not many shareholders in this day and age who will roll over and pay little attention to this kind of announcement."
It is understood that Mr Angwald has not yet found a new job.
A spokesman for Rexam said: "We have honoured the contractual arrangements we entered into when he joined. Rexam's policy is that new directors come in on two-year contracts."
Rexam shares fell 9¼p to 483¾p yesterday.
The Rexam payment comes after Jeroen van der Veer, chief executive of Royal Dutch/Shell, was paid nearly €2.65m (£1.82m) in 2004 - a year in which the Anglo/Dutch oil and gas group had to cut its figures for proved reserves four times. Mr van der Veer received a 90 per cent bonus on his salary at the year end.
Dame Marjorie Scardino, chief executive of Pearson, saw her total remuneration increase by 75 per cent last year to £1.54m in spite of flat sales and a decline in pre-tax profit at the publishing group that owns the Financial Times. Additional reporting by Peter Marsh
Click here for ShellNews.net HOME PAGE