Rentokil initial’s top three bosses could share a windfall of more than £7m in the first instalment of a bumper three-part bonus.
Alan Brown, chief executive, John McAdam, chairman, and Andy Ransom, executive director, were lured to the group in 2008 with the promise that they could share a £95m bonus pot if they turned the business round.
Things have not gone according to plan for the former ICI executives, who have been forced to issue a string of profit warnings.
The 2008 share incentive plan agreed to hand the three 7.5m shares each if they hit a series of targets based on the share price. The first trigger was hitting a minimum share price of 120p for a sustained period.
Two further share awards will be dished out over the next few years if the value is pushed beyond 180p and then 280p.
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Rentokil’s latest annual report revealed that in the first half of 2010 the share price reached a 60-day highest average price of 131p. Under the terms of the five-year incentive plan the three executives will receive just over one-third of 7.5m shares.
This indicates that the three are in line to bank shares worth about £2.3m each at the current Rentokil share price of 90½p.
Rentokil’s annual report also showed that Brown’s total pay fell 40% in 2010 to £989,000.