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Postel warning

Saturday 05 June 1993 23:02 BST
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POSTEL, one of the City's largest institutional fund managers, sent a letter to directors of companies in the FT-SE 100 index warning that it will no longer tolerate high pay-offs for departing executives. Alastair Ross Goobey, chief executive of Postel, says that Postel is likely to vote against three-year rolling contracts for company executives. It wants to see one-year or three-year fixed contracts become the norm.

'Why should shareholders have to pay for executives who leave their company because they are unsuccessful?' Mr Ross Goobey said at the weekend. He is supported by several other top fund management companies including Gartmore and Standard Life.

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