With some class of a statement expected today from Chiquita over its proposed banana-company merger with Fyffes, it is worth remembering what is on the line for Fyffes executive chairman David McCann, should the merger collapse because of this week's rival Brazilian bid.
Documents for the proposed ChiquitaFyffes merger filed with the Securities and Exchange Commission in New York outline in full the payments that would become due to McCann, if the deal goes through.
He would be employed as chief executive on a base salary of $1 million. He would also be in line for an annual bonus of up to $2.25 million, depending upon performance.
McCann also negotiated a “long-term-incentive award” of up to $3.5 million over the first two years, on top of a “transition equity payment” of up to a further $3.5 million over the first two years.
Fyffes paid him a total of about €1 million last year in salary and bonuses, before share awards and pension payments.
All told, McCann is in line for payouts totalling $13.5 million (€10 million) over the first 24 months of the ChiquitaFyffes merger. That’s what you call having some “skin in the game”.
