CH2M execs are set to bag big payouts in Jacobs Engineering takeover deal

 
Courtney Goldsmith
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Jacobs is said to value US-based CH2M at between $60 and $65 per share (Source: Getty)

Executives at engineering firm CH2M are expected to be handed multimillion-dollar payouts following a takeover by US-listed Jacobs Engineering.

The rival companies are set to announce a $1.5bn (£1.1bn) deal as soon as Monday, which is likely to result in huge compensation packages for its senior management as well as job cuts, the Sunday Telegraph has reported.

Jacobs is said to value US-based CH2M at between $60 and $65 per share.

If made redundant by Jacobs, five executives at CH2M are expected to receive payouts for a combined $35m because of changes of control clauses in their contracts.

Chief executive Jacqueline Hinman could bag $16.7m under her contract if she loses her position within two years of the takeover. Her contract also states she will hold shares worth five times her salary of $1m.

Read more: CH2M pulls out of controversial HS2 contract due to "ongoing speculation"

Jobs at risk

CH2M, which is behind key projects in the UK like the massive refurbishment of the Palace of Westminster, employs 20,000 staff around the world including around 2,500 in the UK.

Company sources told the Telegraph they fear deep staff cuts as Jacobs pushes for cost savings.

The privately owned firm's profit has been hit in the past few years by a number of troubled contracts. In its latest company update, CH2M's share price was $50.69, down from more than $70 in 2014.

CH2M has been under pressure to find a buyer since private equity group Apollo bought a 20 per cent stake for $300m two years ago in a deal that gave CH2M five years to buy back the shares or go public.

CH2M did not immediately respond to a request for comment.

Read more: HS2 buckles down on bidding process revamp after CH2M controversy

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