CHARTER International gave its chairman Lars Emilson a three-year extension to his term in June, just five days before Melrose submitted its first takeover bid, it emerged yesterday.
The unusual arrangement could cause headaches for Charter’s buyer Colfax, even though Emilson remains on a one-month notice period and the same terms and conditions apply as previously.
Charter’s board approved the three-year extension to Emilson’s term of office on 23 June during a torrid week when a profit warning in its trading statement caused its shares to plunge 25 per cent in a day. Charter’s chief executive Mike Foster resigned four days later on 27 June, while Melrose tabled its offer just a day after.
Charter has paid Emilson an extra £132,692 for his services from June to September, in addition to his annual £215,000, according to the scheme of arrangement for the sale to Colfax.