The executive chairman of the AA has been sacked with immediate effect for allegedly lashing out at a colleague.
Bob Mackenzie, 64, was removed from his role yesterday by the board of the AA, but no reason was given for his departure other than it involved “gross misconduct”.
However, Mr Mackenzie’s son Peter said in a statement that his father was suffering from an “extremely distressing mental health issue”. He said: “My father tendered his resignation this morning and resigned his directorships due to acute ill health, from which he has been suffering symptoms for some time.
“A consultant clinical psychologist advised him last week that he needed to take at least six months leave. He is very unwell and has been admitted to hospital. The family trusts that all parties will act responsibly towards a loyal servant of the company in a manner which reflects the stress he has been suffering.”
News of the abrupt departure of Mr Mackenzie, as well as a downbeat pre-close trading statement, sent shares in the AA down 14 per cent to 210p, wiping about £210 million off the value of the group.
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The Times understands that Mr Mackenzie has checked himself into a private hospital in London for rest and recuperation after medical advice.
The AA refused to comment on the statement about Mr Mackenzie’s mental health or to provide any more details about the nature of the alleged dispute that led to his departure.
The scene could now be set for a protracted legal battle between the AA and Mr Mackenzie on the financial terms of his departure.
Mr Mackenzie, who floated the roadside assistance group two years ago, owns about 33 million special shares which are convertible into ordinary shares if he meets certain performance hurdles. Martin Clarke, chief financial officer, also holds shares under this five-year “management value participation” scheme.
At the time of the float, this private equity-style incentive scheme raised eyebrows, but the company said that the performance hurdles were high and involved achieving a total shareholder return of 12 per cent on a compounded basis for five years. In broad terms, Mr Mackenzie and his executive team would have to approximately double the equity value of the group while lowering debt and in return would receive a share of the increase in value. Recent trading at the AA has been difficult, however, and it is still not clear if this incentive scheme will pay out.
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Meanwhile, the prospectus published when the AA floated states that if a holder of these special incentive shares is deemed a “bad leaver”, then he will have to forfeit all his shares for one penny. One market source said that the wording of the AA’s statement regarding the departure of Mr Mackenzie “would appear to indicate that they, at least, believe he is a bad leaver”.
The AA said that Mr Mackenzie had been replaced by John Leach, a non-executive director. It also said that Simon Breakwell, a founder of the Expedia travel website and former European boss of Uber.com, would become acting chief executive.