The long running
Xstrata / Glencore saga was in the news again a few days ago for the size of
the financial package that Mick Davis (Xstrata CEO) is being offered . He has
been offered bonuses worth £30 million just to stay when the two
companies merge! Other senior managers at the company are also being offered attractive
financial packages to encourage them to stay. You can read about it in this report
from the Metro newspaper:
This issue
fits nicely with bullet point 5 on the impact of mergers on stakeholders (remember
…………the Xstrata shareholders have already made protests at the perceived undervaluing
of Xstrata). If you were to use this example in an essay you could contrast the
impact of the merger on one group of stakeholders (the 172 senior managers in
Glencore/Xstratsa being offered retention deals) to the response of the shareholders
who feel ripped off. In these times of recession it is becoming more common for
shareholders to speak out when executive pay appears excessive, particularly if
company performance does not seem to justify high rewards.
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