The UK-based drinks group, Allied Domecq, is expected to face tough criticism at its forthcoming Annual General Meeting over the £1.3m additional payout made to former chief executive, Tony Hales.
Investors are reportedly surprised by the scale of the payment. Hales was paid £1m when he left Allied but sued the group for more compensation. However, an Allied spokesman has defended the payout.
“This settlement was made as part of the legal process,” the spokesman said. “Employment law is what employment law is and we are confident we did the best we could for our shareholders.”
The Hales payment was disclosed in Allied’s annual report where it was also revealed that two of the group’s directors, Graham Hetherington and David Scotland, had been granted large lump sums in return for giving up part of their pensions. Shareholders are also expected to question these payments as they relate to future service of the directors even though it is not possible to say how long they will be with the company.
