Oxo-cube maker Premier Foods said its former chief executive will get at least £1 million (€1.14 million) in an exit deal after he stepped down following a shareholder revolt.
Takeover Approach
Gavin Darby, who led the Mr Kipling cake company from 2013 to the end of January this year, drew investor flak for failing to revive the business after rebuffing a takeover approach from US food maker McCormick & Co Inc.
The company's shares have lost nearly a third of their value since McCormick abandoned its approach in April 2016.
Almost 41% of Premier shareholders in July backed an attempt led by activist hedge fund Oasis Management to oust Darby.
In November, Darby agreed to step down, but said it had nothing to do with the shareholder revolt.
The Exit Deal
Darby will be paid £863,557 for his 12-month notice period, covering his salary, contractual benefits, and pension supplement, the company said.
Darby will also be given £30,000 for advisory services and legal fees.
In addition, he will get 638,291 shares, worth about £238,401, based on Thursday's (7 February 2019) close of 37.35 pence.
Legal Obligations
The company said it was meeting its legal obligations under the terms of Gavin's contract, but declined to comment further.
Oasis Management was not immediately available for comment.
In January of this year, the company named Finance Chief Alastair Murray as acting chief executive officer.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
