Cheshire veterinary drugs giant Dechra Pharmaceuticals announced that Tony Griffin will step down as an executive director of the company after 12 years of service, with immediate effect.
Dechra also published remuneration arrangements for Griffin, who will retire from his role as managing director of DVP Europe, effective December 31, 2023.
On June 2, Swedish private equity firm EQT and the Abu Dhabi Investment Authority (ADIA) agreed a deal to buy Dechra for £4.46 billion in a major take-private transaction.
The acquisition is expected to complete in late 2023 or early 2024 following shareholder approval in July.
Dechra CEO Ian Page said: “I would like to take this opportunity to thank Tony for the significant contribution that he has made to the group during his tenure.
“Tony joined us following the acquisition of Eurovet in 2013.
“This was a transformative acquisition, providing critical mass, new markets, a wide range of complementary products and additional expertise to our management team.“
On Griffin’s remuneration arrangements, Dechra said: “Remuneration arrangements in respect of Tony Griffin’s departure from the board have been determined by the Remuneration Committee in line with the Dechra Pharmaceuticals plc Directors’ Remuneration Policy approved by shareholders at the 2020 Annual General Meeting (Policy), his service agreement and Dutch labour law …
“Tony is entitled to 12 months’ notice commencing on the date he stepped down from the board, during which time he is entitled to receive his salary and normal benefits, which will be paid in lieu of notice for the remaining 11 months.
“Under Dutch labour law, Tony will also receive Statutory Holiday Allowance (of 8% of salary) for the notice period and a severance payment of €502,000.
“The severance payment will made based on his original start date with Eurovet Animal Health BV, which is May 1993 …
“Tony is eligible for an annual bonus under the Policy. It has been agreed to pay an average of the last three years bonus payments made. This payment will total €225,000 and will not be subject to any deferment.
“Outstanding deferred bonus awards will be released in accordance with the rules of the Deferred Bonus Plan, the Co-Operation Agreement (with Freya Bidco Limited) and the Policy.
“They remain subject to malus and clawback provisions and will continue to accumulate dividends until they are released …
“Tony will be treated as a ‘good leaver’ for ‘in-flight’ LTIP awards, which will be released, subject to the satisfaction of performance conditions and a time pro-rata reduction, in accordance with the rules of the LTIP, the Co-Operation Agreement (with Freya Bidco Limited) and the Policy.
“These awards remain subject to malus and clawback provisions. No long-term incentive award will be made in 2024 or any subsequent year.”