Malin shares slump more than 3pc as Howd to step down as CEO
SHARES in State-backed Malin lost more than 3pc yesterday, when it was announced that CEO Dr Adrian Howd is to leave his role before the end of the month.
The shares are trading at less than half the company’s IPO price, with the State sitting on a more than 50pc loss on its initial €50m investment. Isif – the State entity that backed the fund – has expressed dissatisfaction with the company’s direction in recent months.
Former Ardagh boss Ian Curley has been brought in as chairman, and will now assume the role of executive chairman until a new CEO is recruited.
The company embarked on a substantial investment spree but now intends to focus most of its resources on four core companies.
Shareholders voted against Malin’s 2017 remuneration arrangements at the company’s recent AGM. The vote was non-binding but the company said it was reviewing its remuneration framework.
Kelly Martin, the former Elan boss who is another former CEO, left with a €3.2m cash severance. Under his contract, Mr Martin was entitled to a severance payment of two times annual salary and two times prior year bonus.
The company’s last annual report says that in certain circumstances departing employees are entitled to the same terms. Malin would not comment on Dr Howd’s severance but it’s believed it was less than that.
Dr Howd said: “Given the recent changes, now feels like a good time for me to part with Malin and embark on the next stage of my career. I am proud of our assets and the prospects for our portfolio. I remain a shareholder and supporter.”