Bulmers chief Templeman in line for £2.5m

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Related tags: H. p. bulmer, Miles templeman

Newly-appointed Bulmers chief Miles Templeman could make more than £2.5m if he succeeds in turning round the struggling cider maker.The former...

Newly-appointed Bulmers chief Miles Templeman could make more than £2.5m if he succeeds in turning round the struggling cider maker.

The former Whitbread beer boss is on a basic salary of £275,000, less than the £302,000 enjoyed by Mike Hughes, the previous chief executive who was sacked in September.

But an incentive package would have a significant impact on Mr Templeman's bank balance, should he succeed in reviving the company.

A circular sent to shareholders to approve the sale of its Australian and New Zealand cider business to Foster's for £22.5m, details Mr Templeman's remuneration package.

He could end up with shares worth £4.3m at a cost of just £1.8m.

However, the challenges are not insignificant.

He must refinance the business for the long-term - just three weeks ago Bulmers warned worsening trading conditions could see it breach its banking covenants.

Mr Templeman cannot exercise options until five years after the refinancing.

A third condition is that the shares must rise above 400p - where they were a year ago. As this article was posted the price was 92p.

One analyst who has followed the situation closely said: "If he is successful in doing all that, then he will have earned every penny."

Last week it emerged that the sale of the Australian and New Zealand business might not be enough to halt Bulmers spiralling debts.

Bulmers commercial director Jean-Francois Jamet is in talks to buy The Beer Seller, its distribution business, but the company has not ruled out an outright trade sale.

The document detailing Mr Templeman's pay package also included news that his ousted predecessor, Mr Hughes, is threatening to bring legal proceedings for wrongful dismissal.

Alan Flockhart, fired soon after the discovery of the infamous £3.8m black hole, has lodged a complaint with the Employment Tribunal for unfair dismissal. The most Mr Flockhart could win is £55,600. Bulmers says it will vigorously contest such a claim.

Neither Mr Flockhart or Mr Hughes have been paid compensation.

Related articles:

Bulmers appoints new finance chief (10 February 2003)

Finance worries could force Bulmer sale (30th January 2003)

Troubled Bulmers unveils £34m loss (6 January 2003)

Bulmer banks on Miles Templeman (16 December 2002)

Dividend blow at Bulmers (27 November 2002)

Bulmers downgrades profit forecasts (14 October 2002)

Bulmer fires finance chief over £3.8m hidden costs (1 October 2002)

Bulmer boss falls on sword (12 September 2002)

Bulmers uncovers £3.3m black hole in accounts (10 September 2002)

Related topics: Cider

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