Montgomery pay-off costs Mecom £2.3m
Newspaper publisher Mecom has taken a £2.3m financial hit following the recent removal of its chief executive and founder.
David Montgomery: Ousted from Mecom following an investor revolt
David Montgomery will receive a £1.3m pay-off, with the company incurring a further £1m in costs relating to his abrupt departure in January, Mecom revealed.
Executive chairman Stephen Davidson told the Mail it would take 'some months' to find a long-term replacement for the former Mirror group boss, who was ousted from Mecom following an investor revolt.
The 'golden-goodbye' came to light as Mecom said it would begin paying dividends to shareholders after its operating profits increased by 28% to £135m last year.
Mecom recently rebuffed a merger approach from Trinity Mirror.
Davidson maintained that he had swiftly and 'politely' rejected the offer to throw his lot in with Trinity, which owns the Mirror national titles and a string of UK regional publications. The proposal 'lacked industrial logic', he said.
• Advertising tycoon Sir Martin Sorrell has landed a £5.8m share windfall from his WPP conglomerate.
The latest award, which comes from a bonus scheme set up five years, lifts Sorrell's stake in WPP to 1.4pc.
His holding is worth £142m at last night's closing price of 799p.
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