Belgium: Former InBev chief seeks 30-mln-euro severance deal
The former chief of brewing giant Inbev is seeking a 30-million-euro (41-million-dollar) severance deal, AFP reported April 13.
After getting shown the door in December 2005, John Brock is fighting the cancellation of stock options worth "several tens of millions" of euros from the Brazilian-Belgian brewer, according to daily Le Soir.
The American citizen was replaced by Brazilian Carols Britos at the helm the world's second-biggest brewer, which owns such beer brands as Stella Artois, Brahma and Beck's.
In case of departure, his contract allowed for the equivalent of three years of his gross salary or about 10 million euros, which InBev is ready to pay, the newspaper said.
The newspaper reported that there was a "conflict" over the stock options, which a clause in his contract said had to be held onto for at least three years.
However, Brock was at the helm of the company for only two years and 10 months and therefore "his options were annulled," Le Soir said.
Although InBev board had made exceptions in the past for other executives in similar situations, Brock had no support "at the end of his reign" from both key Brazilian and Belgian shareholders.
In addition to challenging the cancellation of his options, Brock is also seeking a more generous contribution to his pension, "which should drive his total departure package to 30 million euros," Le Soir said.
The company declined to comment on the matter when questioned by AFP.
The dispute comes amid growing concern in Europe but also the United States about compensation for corporate executives, especially when they are forced to part from their employers because of a dismal performance.
Most recently, a 8.5-million-euro severance payment for a French aerospace executive fuelled widespread outrage on Wednesday in France with presidential election candidates calling it a scandal.
Two months away from general elections in Belgium, some parties are also beginning to clamour for action against golden handshakes.
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