Corus Group chairman Jim Leng will receive an addition payment of pound 750,000 (Rs 6.41 crore) for turning around the Anglo-Dutch steel maker in the past two years.
According to the offer document of Tata Steel UK (Tata Steel's wholly-owned subsidiary through which the Corus acquisition is being made), Corus has determined to pay the extra amount to Leng " in recognition of the additional work that he has undertaken for the last two years."
The addition payment is significant especially if it is compared with his annual fee of pound 275,000 (Rs 2.35 crore) for the financial year December 2005.
In addition, Leng will also receive payment of pound 123,612 (Rs 1.05 crore) as Corus is unable to give him award shares as it is in a prohibited period under the listing rules of the UK. Leng is entitled in financial year to an award of Corus shares based on the average share price in that year. For the year ended December 2005, the value of the award was pound 153,086 (Rs 1.31 crore).
For the year ended December 2006, Leng is entitled to receive an award of pound 84,746. However, the document said that since the company was unable to deliver shares as it was in the prohibited period under the listing rules and would only cease to be so upon completion of acquisition.
Tata Steel had agreed to pay $12 billion, or 608 pence a share, to purchase Corus Group. The Tata offer had been recommended by the Corus board. The offer will be placed before the Corus shareholders at an EGM on March 7. If the transaction is approved by the Corus shareholders, the shares will de-list from the London and Amsterdam stock exchanges on 29 March. Completion of the deal is expected on 2 April.
Leng would continue on the Corus board as the deputy chairman after the acquisition is complete and would become deputy chairman of Tata Steel.
Philippe Varin, chief executive officer, Corus would also continue as a director on the Corus board and upon completion of one year of acquisition, would become deputy managing director of Tata Steel, according to the earlier scheme. He would report to Ratan Tata, chairman, Tata Steel, and would also chair the Corus board.
The base annual salary of Varin is now pound 854, 554, David Lloyd (executive director, finance) is pound 455,000 and Rauke Hesntra (division director strip products).
According to Tata Steel's latest annual report, annual gross remuneration of MD B Muthuraman is Rs 2.20 crore (Rs 22 million).
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