Former Inchcape chief gets GBP1.36m
SHEEL KOHLI in London
Former Inchcape chief executive Charles Mackay is to get GBP1.36 million (about HK$15.87 million) as compensation for loss of office after he was made to leave the motor, marketing and insurance group last month.
In its 1995 annual report and accounts released yesterday, the firm said Mr Mackay was the highest paid director, earning GBP397,000 in salary and other benefits.
In the same period, the company announced a 36 per cent fall in profits and its shares dipped.
The pay-out is more than previous estimates of about GBP800,000. Mr Mackay left the firm amicably after it was agreed that Inchcape's continued poor performance made his position untenable.
The group has embarked on a strategic review, under the stewardship of recently appointed chairman Sir Colin Marshall.
Besides his payout, Mr Mackay would 'retain the right to exercise the executive share options he now holds', the report said, which amounted to about 400,000 share options, exercisable at prices ranging from GBP0.162 to GBP0.585.
Explaining Mr Mackay's compensation pay-out, the report said: 'It has been agreed that he will receive the sum of GBP760,000, subject to deduction of tax, as compensation for loss of office.
'In addition, a payment of GBP603,000 will be made on June 30 [when Mr Mackay leaves] to the British Group Pension Scheme in respect of his pension arrangements.' Supplementing his remuneration of GBP397,000, Mr Mackay will receive GBP167,000 for pension contributions from last year.