AG Barr chief executive Roger White is to be handed a massively increased pay package of up to £2.8 million plus a £1.4m payout on existing incentive schemes if the Irn-Bru maker’s reverse takeover of soft drinks rival Britvic is approved.
The merger would create a company with annual sales of more than £1.5 billion.
Documents sent to shareholders yesterday reveal that, on becoming chief executive of the combined Barr Britvic Soft Drinks, Mr White’s basic salary will rise to £530,000.
This compares to the basic £322,000 Cumbernauld-based AG Barr paid him.
Britvic chief Paul Moody, who will leave on the deal’s completion, receives £510,000.
Mr White will also be eligible for an annual cash bonus of up to 125% of his basic salary, which could net him a further £662,500. Again, this is more generous than his current maximum of 100% of salary, which was recently increased from 75%.
But the big money spinner for Mr White is likely to be the long-term incentive plans. The company is proposing a transitional and an ordinary scheme, both of up to 150% of salary, which will pay out over the next three years and together could be worth £1.6m to Mr White.
The AG Barr maximum long-term incentive currently is 100% of salary.
Under the terms of the deal, all existing long-term incentive schemes will pay out giving Mr White a £1.4m windfall.
The deal requires the backing of 75% of Britvic investors and half of those in AG Barr.