Executives who stood to share £20 million sterling from the sale of Londis in December have agreed to drop their rights to the controversial bonus scheme.
The quartet will instead receive a one-off settlement totalling £2 million while chief executive Mr Graham White will also step down in order to take a consultancy role, the convenience store group said today.
News of the potential £20.4 million windfall caused outcry among the group's retail shareholders after it emerged a takeover by the Musgrave chain would have triggered a change-of-ownership clause in the bonus scheme. The options would have given the executives a 51 per cent stake in the company.
The move comes as Londis prepares for a sale of its business after a review by KPMG found members would benefit from a tie-up with a trade partner.
The group, which is owned by the shopkeepers who hold shares in the wholesaling and distribution business, was the subject of the review after the proposed £40 million Musgrave deal fell through.
Around 2,000 shopkeepers have a £50 share in the wholesaler and would have got in the region of £10,000 each from the Musgrave offer.
Londis non-executive chairman Mr Peter Williams said today: "We should like to express our appreciation of the executive management's willingness to reach this agreement, which clears the way for the next stage of the strategic development of Londis."
PA