IOOF Holdings (IOOF) has agreed to make retention payments to a number of DKN Financial Group's (DKN) senior executives including group chief executive Phil Butterworth.
According to a proposed scheme booklet released by DKN on Friday, Butterworth would receive $180,000, and 100,000 worth of IOOF employee options, if IOOF is successful in its acquisition of the listed financial services firm.
As well as the retention package, Butterworth will be paid a $78,000 bonus as part of the scheme bonus payments.
Butterworth has more than 700,000 DKN shares and 2 million DKN options, the scheme booklet documents said.
Under the proposed retention arrangements, DKN senior executives Andrew Rutter, Mario Modica and Kon Costas will be entitled to retention payments and issue IOOF employee options with an exercise price of $7.50.
"The total cash component of all such executive retention payments is approximately $335,000 and the total number of IOOF employee options to be issued as executive retention payments is 200,000," the documents said.
The retention payments are intended to ensure "continuity of service" for up to two years after the implementation date of the deal, it said.
IOOF managing director Chris Kelaher and DKN non-executive director holds 480,000 DKN shares, representing 0.33 per cent of DKN shares on issue.
During the course of the acquisition discussions, Kelaher, who holds 4 million IOOF shares, has taken a leave of absence from the DKN board, the documents said.
A shareholder vote on the scheme is expected to be held on Tuesday 27 September and subject to approval would be implemented in October.
