ABI pay alarm clouds Glencore-Xstrata merger plan
The proposed £57bn mega-merger of the mining and commodity giants Glencore and Xstrata was dealt a further blow yesterday as a key shareholder body condemned the companies' plan to pay key executives £170m just to keep them at the combined group if the deal goes through.
The Association of British Insurers made its contempt known by issuing a rare red-top alert on the retention payments, a core part of the deal that would see Xstrata's chief executive, Mick Davis, receive £29m for running the company for three years after the merger is finalised, irrespective of its performance.
The red top represents ABI's highest level of concern about an issue facing the shareholders it represents. ABI's head of corporate governance, Andrew Ninian, said: "The ABI is always sceptical about the effectiveness of retention payments."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies