About 100 Saatchi & Saatchi employees will share in a multimillion dollar bonanza following the advertising agency's confirmation yesterday that it is to be bought by Publicis of France for £1.2 billion sterling in stock.
Incentive schemes that will vest because of the merger mean 35 managers will receive Publicis shares worth a total of £59.2 million at the offer price of 500p a share, making an average pay-out of 1.7m each.
Mr Bob Seelert, the company's part-time chairman, will receive shares worth £6.6 million and another £3.7 million from the triggering of phantom options, making a total of £10.3m. Mr Kevin Roberts, chief executive, will receive shares worth £7.7 million .
Mr Bill Cochrane, finance director, will receive shares worth £5.6 million and Ms Wendy Smyth, corporate affairs director, will receive £6 million. Another 63 employees will receive shares worth £39 million , averaging £620,000 per person.
"The tills will be ringing for those who rescued this company from the graveyard," said one adviser to the deal, referring to the company's weak financial position when it was demerged from Cordiant in December 1997.
On the demerger, many senior employees subscribed to incentive plans that would pay out up to eight times as many shares as their original investment would buy if three-year performance targets were met.
The value of the deal to Saatchi's shareholders declines if Publicis's share price falls below €432. Reflecting this, Saatchi's shares closed at 417p, down from 460p.
