Ahold and Delhaize said Wednesday that they would not pursue approval of a proposed bonus plan for executives of the merging companies as part of a shareholder vote on the merger next week, saying it intended to take up the matter in April instead.
Initial plans had called for one-time retention and incentive awards for members of the proposed management board and executive committee of the merging companies, in performance stock equal to a full-year salary.
"However, the Supervisory Board of Ahold and the Board of Directors of Delhaize Group did not feel that this element of the remuneration proposal had the same broad base of support that investors and other stakeholders have expressed for the merger overall," Ahold said in a release Wednesday. "As a result, it will not be considered at the upcoming [meeting], and Ahold will instead submit the remuneration policy without this award for consideration at its [annual general meeting] on April 19."
The proposed share incentives, the companies said, "are a reflection of the critical role of each executive in the business and were put in place to ensure a successful completion and integration that will benefit both companies. The executives being awarded these incentives are essentially performing two roles: ensuring the business continues to deliver results, while also leading complex integration workstreams."
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