Fairmont CEO to gain $6 million US if sale goes through
Last Updated: Wednesday, March 22, 2006 | 5:02 PM ET
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The Toronto-based hotel chain disclosed Wednesday that CEO William Fatt will receive three years severance pay if two-thirds of shareholders vote in favour of the Saudi prince's acquisition bid at a special meeting to be held on April 18.
In addition, Fatt will get 69,657 restricted shares worth $45 US apiece, his stock options and such perks as health insurance, vacation pay, car expenses, a lump sum in lieu of pension and, to top it off, career counselling in case he decides to seek another job.
The total value of Fatt's package comes to more than $6 million US, according to Canadian Press.
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The details of the executive compensation were included in the company's 137-page management information circular released Wednesday.
The documents state that Fairmont's executive officers will get a total of $31 million US if the deal goes through, while members of the board will get $5.8 million US in deferred units and options.
Fairmont's share price (TSX:FHR)rose 5 cents on the Toronto Stock Exchange to close at a new 52-week high of $52.01.
The deal to sell Fairmont was announced soon after U.S. financier Carl Icahn announced a hostile takeover for the hotel chain. Fatt searched for a white knight and found the Saudi prince.
Prince al-Waleed bin Talal is considered the fifth wealthiest man in the world and the world's richest Arab. He already owns a significant share of Toronto's Four Seasons Hotel chain and huge resorts in Dubai and other tourist destinations.
- FROM JAN. 30, 2006: Fairmont Hotels agrees to $3.9-billion US takeover
Fairmont is based on Canada's longstanding Canadian Pacific Hotels. It owns or runs the Royal York Hotel, Lake Louise and the Banff Springs Hotel, among others.
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