Londis incentive row may slow deal
Shareholders in the company are furious that top executives could pocket as much as half of the €57m sale price agreed with the family-owned Musgrave Group which operates the SuperValu and Centra franchises in Ireland.
It has now emerged that top management at Londis will receive huge pay-outs from a share incentive scheme that will hand directors majority control of the company in the event of a takeover. The company defended the scheme as a "well-deserved reward".
Four company directors - Graham White, chief executive, Andrew Wallace, secretary, Terry Bedford, sales director, and Denise Buller, commercial director stand to share €28.5 million if the sale proceeds.
Musgrave had agreed with the British board of Londis to buy the entire issued capital of the company. The offer will be considered and voted upon by British shareholding members at a Londis EGM on December 30. If it is accepted, Musgrave will take control of Londis at the end of January 2004.
