Big windfall for Morrison directors if £ 6.3bn takeover goes through Yorkshire News

Morrisons CEO David Potts

Three directors can earn up to £ 35 million from the proposed sale of the company, The Sunday Times reported.

The deal is already controversial after both unions and Labor MPs raised concerns about the impact on jobs and the supermarket’s sizable real estate portfolio.

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Business Secretary Kwasi Kwarteng will meet with Morrison board members to discuss the acquisition proposal.

The offering, led by Softbank-owned Fortress, which has partnered with the Canada Pension Plan Investment Board and Koch Real Estate Investments, will see shareholders receive 252 pence per share plus a special dividend of 2 pence.

Morrisons chief executive David Potts can earn up to £ 19.6 million if the supermarket’s board decides to honor stock awards given to executives under long-term incentive plans, according to the Sunday Times.

You are guaranteed a £ 9.2 million settlement payment on the shares you already own.

Luke Hildyard, director of think tank The High Pay Center, said this would be a “hugely excessive” windfall.

Morrisons COO Trevor Strain is awaiting a £ 3.6 million payment, which could rise to £ 11.5 million. Chief Financial Officer Michael Gleeson will receive £ 804,565, possibly increasing to £ 3.7 million.

Former CEO Sir Ken Morrison passed his fortune to his wife Lynne and their five children when he died four years ago. Family members own around 5 per cent of the supermarket chain, suggesting the deal will put a valuation of £ 315 million on their shares.

Speaking to The Yorkshire Post, Mr. Kwarteng confirmed that he should speak to Morrison’s board, but added that he had no plans to speak with Fortress.

“We are monitoring the situation,” he said.

“It is not something that classically I would like to intervene. I think the government has a role, but I don’t want to be in a position where the government intervenes in every M&A transaction that takes place. I don’t think that’s the role of the ministers.

“I think there is a concern for Morrisons with their great tradition, their great history. It employs a large number of people, about 100,000 people, so it is a significant business. “

Morrisons said the Fortress deal will protect Sir Ken Morrison’s legacy, Morrisons history and culture, and his staff and clients.

In a statement, Morrisons said: “Morrisons and Fortress place a very significant emphasis on the broader responsibilities of the Morrisons property.

“These responsibilities include recognition of Sir Ken Morrison’s legacy, Morrisons history and culture, and the important role Morrisons plays for all stakeholders, including colleagues, clients, Morrisons Pension Schemes members, local communities, vendor partners. , British agriculture the general British public.

“Fortress’s investment focus is to acquire companies with strong management teams and train them to deliver their long-term strategy.”

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This notice was published: 2021-07-11 11:02:13

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