Brambles Industries PLC
14 March 2003
AMENDMENT OF DAVID TURNER'S SERVICE CONTRACT
Under the original terms of his employment and on completion of a two year term,
Mr David Turner, Brambles Chief Financial Officer, was entitled to give notice
to terminate his employment with Brambles with effect from 6 August 2003. These
terms were agreed at the time of formation of Brambles' dual listing and
recognised the commitment made by Mr Turner to relocate to Australia to take up
this significant position, at such a critical stage in the Group's development.
The Board considers it is in shareholders' interests for greater certainty to
exist in relation to the duration of Mr Turner's service arrangements. Mr Turner
has therefore agreed to forgo his ability to give such notice and his
entitlement to the payments and benefits described above, and has agreed to
remain as Chief Financial Officer of Brambles until 31 December 2004. At the end
of 2004, Mr Turner will be engaged by Brambles to provide consulting services
for a further year. The cost to Brambles of this consulting service is likely to
be equivalent to Mr Turner's total fixed remuneration for one year.
The Company has agreed that Mr Turner will be entitled to participate in the
grant of options and performance shares in September 2003 in accordance with the
terms of the 2001 Executive Share Option Plan (Option Plan), the 2001 Executive
Performance Share Plan (PSP) and his service contract, but will not be eligible
to receive a grant of options or performance shares in September 2004.
The Board has determined that it will exercise its discretion under the terms of
the Option Plan so as to permit Mr Turner to exercise following termination of
his employment all options granted to him prior to and including the September
2003 grant within the respective exercise periods to the extent that the
performance condition relating to those options has been satisfied.
The Board has also determined that it will exercise its discretion under the PSP
so that following termination of his employment:
• all Awards up to and including the 2002 Award will vest to the extent
that the performance condition relating to that Award has been satisfied but
will be subject to pro-rating by reference to the proportion of the performance
period during which he has been employed; and
• his 2003 Award will vest to the extent that the performance condition
relating to that Award has been satisfied.
Under Mr Turner's original terms of employment, if he had exercised the
termination right described above, he would have been entitled to receive one
times his annual total fixed remuneration and average annual cash bonus. If he
did not find suitable alternative employment within 12 months after termination,
he would also have been entitled to further monthly payments totalling up to an
additional one times his annual total fixed remuneration, until such time as he
found such alternative employment. Full details of these arrangements, together
with the manner in which Mr Turner's options and performance shares would have
vested in these circumstances, were included in the documentation sent to
shareholders for approval of Brambles dual listed companies structure in June
For further information, contact:
Investor Sue Scholes, Head of Investor Relations +44 (0) 20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0) 20 7269 7291
Investor John Hobson, Head of Investor Relations +61 (0) 2 9256 5222
Media Jeannette McLoughlin, Group General Manager, Corporate +61 (0) 2 9256 5255
Communications Mobile +61 (0) 401 990 425
Brambles Industries is globally headquartered in Australia
Notes to editors
Brambles is a leading global support services provider with operations in 40
countries across Europe, the Americas and Asia Pacific. With full year 2002
turnover of approximately £3 billion, operating profit of more than £400 million
and assets of £3.7 billion, it employs some 31,000 personnel worldwide. Its key
global businesses are CHEP, CLEANAWAY and RECALL.
• CHEP is the world's pioneer and leader in the provision of
pallet pooling services. CHEP pallets facilitate the efficient operation of
supply chains for most of the developed world's leading international FMCG (Fast
Moving Consumer Goods) companies. These companies require the fast availability
of high quality pallets and other types of standard loading equipment and
transit packaging wherever they operate. CHEP meets this need through its
global reach and scale, combined with its proven logistics and supply chain
management capability and its established pallet pools and infrastructure in
more than 30 countries.
• CLEANAWAY is a leader in the collection, sorting, recycling,
transfer and disposal of waste, particularly in UK, Germany and Australia.
Through Cleanaway Germany, it is one of the largest paper recycling and trading
businesses in Europe.
• RECALL is a global business managing physical and digital
documents through their entire life cycle.
It also has a number of other global and regional businesses, such as Industrial
Services, Meineke Car Care Centers and Interlake Material Handling.
The combined group was formed in August 2001, when Brambles Industries plc,
previously the support services activities of GKN plc, was listed in London and
then combined in a Dual Listed Companies structure with Brambles Industries
Limited of Australia. The two companies were previously joint venture partners.
This information is provided by RNS
The company news service from the London Stock Exchange