Sappi CEO pay under spotlight

12 January, 2007 at 11:19 am | Posted in Companies | Leave a comment

Sappi’s former chief executive, Jonathan Leslie, will receive his full package of $5.98 million (R43 million) for the year to September 2006 even though he resigned in March, allegedly because he had failed to turn around the struggling group after three years.
More than $1 million has not yet been paid out as it is part of a share scheme that runs until 2008. By then, if the shares perform below a certain level, he will be paid out. However, if the shares perform above a certain level, he will be paid the value of the shares.

On the other hand, chairman Eugene van As, who has been turning the ship around since Leslie’s departure, will get $1.5 million for the year. At least $98 426 will be board fees from April until September and the balance of $1.4 million, which has not yet been fully paid, is the value of shares that the board is giving him as payment for his role as acting chief executive. He received 50 000 shares on September 29 and will receive a further 50 000 shares at the end of March. In Sappi’s latest annual report, Van As said the past year had again been difficult and many changes had been made in the business as management struggled to turn around performance. He said the group had lost market share in the US and Europe.

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