CEO of Tomkins Resigns Amid Allegations of Excess
Thursday October 12 8:07am
Source: Dow Jones
A WSJ.com News Roundup
LONDON -- Tomkins PLC said Chief Executive Greg Hutchings has resigned effective immediately, amid allegations of corporate excess.
The London-based conglomerate said David Newlands has been appointed executive chairman.
Mr. Newlands also said the allegations were true that Mr. Hutchings's wife and housekeeper had been on Tomkins' payroll.
The new executive chairman said Tomkins would undergo a strategic review before it begins seeking a successor to Mr. Hutchings, who joined
Tomkins in 1983. Mr. Newlands said the review could run for some weeks or months, but declined to say whether a sale of the business is an option.
"We were already thinking about the future of Tomkins (TKS) after the (Rank Hovis McDougall) disposal," he said.
Tomkins sold the food business in July for 1.14 billion pounds ($1.67 billion or 1.92 million euros).
Mr. Hutchings had been under long-running pressure from shareholders over the group's sprawling business interests. But recent allegations of
corporate excess triggered his departure.
Mr. Newlands said that, on Monday, he asked auditor Arthur Andersen to investigate why Mr. Hutchings's wife and housekeeper had been on the
company's payroll, and to probe the use of four private jets owned by Tomkins.
"There is some evidence of corporate excesses in the past," Mr. Newlands said.
He added that Mr. Hutchings had been receiving remuneration of around 1.4 million pounds a year ($2.04 million), but declined to say whether Mr.
Hutchings would receive severance pay.
Mr. Hutchings "resigned without prejudice to his rights and we accepted without prejudice to ours," Mr. Newlands said but declined to elaborate.
Mr. Newlands said he would contact the company's major investors to reassure them that the group is addressing corporate-governance issues on a
one-to-one basis.
In a statement to the London Stock Exchange, Mr. Newlands said Tomkins was in "good shape, with excellent management teams across its
operations around the world."
He added: "I assure you we have cleaned up our act."
On Monday, Ed Shultz, who negotiated the landmark agreement by Tomkins unit Smith & Wesson Corp. to limit marketing of its guns in exchange for immunity from government lawsuits, stepped down as president, the company said.
Copyright (c) 2000 Dow Jones & Company, Inc.
All Rights Reserved.
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Thursday October 12 8:07am
Source: Dow Jones
A WSJ.com News Roundup
LONDON -- Tomkins PLC said Chief Executive Greg Hutchings has resigned effective immediately, amid allegations of corporate excess.
The London-based conglomerate said David Newlands has been appointed executive chairman.
Mr. Newlands also said the allegations were true that Mr. Hutchings's wife and housekeeper had been on Tomkins' payroll.
The new executive chairman said Tomkins would undergo a strategic review before it begins seeking a successor to Mr. Hutchings, who joined
Tomkins in 1983. Mr. Newlands said the review could run for some weeks or months, but declined to say whether a sale of the business is an option.
"We were already thinking about the future of Tomkins (TKS) after the (Rank Hovis McDougall) disposal," he said.
Tomkins sold the food business in July for 1.14 billion pounds ($1.67 billion or 1.92 million euros).
Mr. Hutchings had been under long-running pressure from shareholders over the group's sprawling business interests. But recent allegations of
corporate excess triggered his departure.
Mr. Newlands said that, on Monday, he asked auditor Arthur Andersen to investigate why Mr. Hutchings's wife and housekeeper had been on the
company's payroll, and to probe the use of four private jets owned by Tomkins.
"There is some evidence of corporate excesses in the past," Mr. Newlands said.
He added that Mr. Hutchings had been receiving remuneration of around 1.4 million pounds a year ($2.04 million), but declined to say whether Mr.
Hutchings would receive severance pay.
Mr. Hutchings "resigned without prejudice to his rights and we accepted without prejudice to ours," Mr. Newlands said but declined to elaborate.
Mr. Newlands said he would contact the company's major investors to reassure them that the group is addressing corporate-governance issues on a
one-to-one basis.
In a statement to the London Stock Exchange, Mr. Newlands said Tomkins was in "good shape, with excellent management teams across its
operations around the world."
He added: "I assure you we have cleaned up our act."
On Monday, Ed Shultz, who negotiated the landmark agreement by Tomkins unit Smith & Wesson Corp. to limit marketing of its guns in exchange for immunity from government lawsuits, stepped down as president, the company said.
Copyright (c) 2000 Dow Jones & Company, Inc.
All Rights Reserved.
------------------
911 - Gov't-sponsored dial-a-prayer!
Support the US Olympic Shooting Team!
Protect your Right to Keep and Bear Arms!