Listen to this article
This is an experimental feature. Give us your feedback. Thank you for your feedback.
What do you think?
Bunge, the grain trader being stalked by Swiss commodity titan Glencore, has increased the number of executives who can receive a payout if the company is acquired by a rival.
There are now five top directors eligible for cash compensation if they lose their jobs without “cause” or “good reason” within two years of a takeover, according to regulatory filings.
Previously, only chief executive Soren Schroder, was in line for the package, which amounts to two years salary, bonus and the accelerated payout of share options.
Now, Thom Boehlert, chief financial officer, Brian Thomsen, head of agribusiness, Gordon Hardie, head of food and ingredients business, and Raul Padilla, chief executive of Bunge in Brazil, also qualify for payments.
“To enhance retention and align with market practice, on November 1, 2017, the Company entered into executive change of control severance agreements with its executive officers,” the filing says.
Glencore revealed in May that it had approached Bunge in May about a possible “business combination”.
Many analysts believe Glencore, which wants to expand its agricultural arm, will return with another offer. However, if cannot launch a hostile bid for Bunge until a standstill agreement expires in February.
News of the takeover payout scheme was first reported by Reuters.