UK - Pension funds have welcomed a decision by music giant EMI to change its executive contracts to curb payoffs in the event of a takeover.
EMI group chairman Eric Nicoli and chief financial officer Roger Faxon – both on one-year rolling contracts – had clauses removed from their contracts that would have allowed for a two-year payoff should they lose their jobs as a result of a takeover of the company.
However, EMI chief executive Alan Levy will retain the takeover clause in his contract.
EMI, the world’s third biggest music company, has seen its shares slide nearly 70% in the past year.
In December last year the NAPF and the ABI revealed a new set of guidelines for payments to failed executives.
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