No Fat Cattery for Jessop's Directors

Feb 14 2005 by Brian Amble Print This Article

Directors at UK photographic retailer Jessops are contractually bound to receive as little as a week's payoff if they are fired after a big fall in the company's share price.

According to today's Daily Telegraph, the clause was agreed by Jessops' two executive directors when the company floated in November.

Both CEO Derek Hine and finance director John Crabtree are employed on rolling 12-month service contracts. But a special clause states that if a director is dismissed within six months of the shares falling by 33 per cent relative to the company's peers over a 12-month period "the notice period will be reduced to one week's notice for each year's service up to a maximum of 12 weeks".

Said Derek Hines: "I don't feel holier than thou about doing it. It just feels fair"

Daily Telegraph | New take on top pay at Jessops