Centro chief walks with $1.5 million
Tuesday, January 15, 2008/
Andrew Scott, the chief executive of troubled Australian shopping centre owner Centro, has resigned.
But while Centro continues to struggle and shareholders have taken massive losses, Scott is walking away with a $1.5 million payment today and another payment of the same amount in two months if he satisfactorily completes “consulting obligations”.
The payout is sure to infuriate disgruntled shareholders who have criticies the company’s risky financial strategy.
Meanwhile, another former chairman of a big company that cost its shareholders a great deal, Ray Williams, has been released from jail also causing angst to disgruntled shareholders.
Williams, 71, who served less than four years of his sentence imposed after he pleaded guilty to three criminal charges related to the $5.3 billion collapse of HIH, will be on parole for a year and nine months.
He is halfway through a 10 year ban on directing companies and will have to disclose his financial dealings to his parole officer.
The former high-flier will be 76 before he can direct a company again, but he need not worry about living comfortably in retirement because he transferred much of his personal fortune to his wife before he was convicted.
His neighbours in Sydney’s lower north shore suburb of Seaforth are reportedly not pleased to have him back.
Join the debate: Is it fair that Andrew Scott is paid to leave Centro? Is it fair that Ray Williams is still rich? What do you think? Send in your thoughts to [email protected]