Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Premier Foods says CEO Darby will get at least £1 million exit deal

Published 08/02/2019, 17:13
Updated 08/02/2019, 17:20
© Reuters. FILE PHOTO: Boxes of OXO stock cubes are seen on the shelf of a supermarket in Manchester

© Reuters. FILE PHOTO: Boxes of OXO stock cubes are seen on the shelf of a supermarket in Manchester

(Reuters) - Oxo-cube maker Premier Foods (L:PFD) said its former chief executive will get at least 1 million pounds ($1.3 million) in an exit deal after he stepped down following a shareholder revolt.

Gavin Darby, who led the Mr Kipling cake company from 2013 to the end of January this year, drew investor flak for failing to revive the business after rebuffing a takeover approach from U.S. food maker McCormick & Co Inc (N:MKC).

The company's shares have lost nearly a third of their value since McCormick abandoned its approach in April 2016.

Almost 41 percent of Premier shareholders in July backed an attempt led by activist hedge fund Oasis Management to oust Darby. In November, Darby agreed to step down, but said it had anything to do with the shareholder revolt.

Darby will be paid 863,557 pounds for his 12 months' notice period, covering his salary, contractual benefits and pension supplement, the company said. Darby will also be given 30,000 pounds for advisory services and legal fees.

In addition, he will get 638,291 shares, worth about 238,401 pounds, based on Thursday's close of 37.35 pence.

The company said it was meeting its legal obligations under the terms of Gavin's contract, but declined to comment further.

Oasis Management was not immediately available for a comment.

© Reuters. FILE PHOTO: Boxes of OXO stock cubes are seen on the shelf of a supermarket in Manchester

Shares of the company were little changed at 36.90 pence at 1000 GMT.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.