Please wait. Contacting image service... loading

Article text

Spalvins goes
with less
than $500,000
MELBOURNE: Adelaide Steamship
Co Ltd has paid former chief executive
John Spalvins $5.28 million as compen
sation for being sacked.
The payment is on top of a a hefty
superannuation payout.
fowever, after repaying loans under
group's executive-share plan, the
failed entrepreneur has walked away
with less than $500,000.
In a statement to the Australian Stock
Exchange just before the close of trade,
Adsteam said its board had decided on
the payout after receiving legal advice.
"The directors of Adsteam obtained
legal advice from senior counsel to the
effect that on termination of his employ
ment Mr Spalvins would have a valid
claim for compensation for loss of of
fice," it said.
Adsteam said Mr Spalvins had also
received an undisclosed superannuation
payout and had used the combined funds
to repay $11.5 million he owed under the
executive-share plan.
Mr Spalvins walked out of the group's
headquarters in Adelaide last night with
a cheque for $473,465, 11 million Ad
steam shares, and 4.5 million options.
In 1989, those shares were worth
$116.5 million, but when market senti
ment turned, and analysts rejected the
web-like structure Mr Spalvins had cre
ated between Adsteam and its associates,
the share price tumbled.
At yesterday's price of 7c, those shares
are worth $1.12 million.
Adsteam announced in May that after
18 years with the company, Mr Spalvins
would "relinquish his duties" as manag
ing director from July 5.
The decision followed the plunge in
Adsteam's scrip, threats of wind-up ac
tion and a consolidated net loss of $1.28
billion for the December half.
$