Ex BAT chief handed £1.5m lump pension payout after exit from Lucky Strike maker
The former head of British American Tobacco (BAT) will be handed a £1.5m lump pension payout following his surprise exit from the cigarette company last month.
Jack Bowles departed the Luck Strike maker last month following four years at the helm – he was replaced by former finance director of the group Tadeu Marroco.
At the time, the company gave no reason for Bowels departure, but sources previously told the Financial Times that it could be linked to the $635m (£512m) fine BAT paid out to US authorities over its decision to supply cigarettes to North Korea in breach of economic sanctions.
Bowels, who has headed the company since 2019, has not been blamed for any wrongdoing in the case.
However, details of his departing payment have now been made publicly available showing that the former chief will receive lump sum under the unfunded unapproved retirement benefits scheme which is close to £1.5m.
He will also be paid £1.38m in lieu of notice equivalent to 12 month’s salary, however it was also said that Bowles would “not be eligible” to receive an annual bonus under the Company’s international executive incentive scheme in respect of financial year 2023.
It comes as the group predicts a three – five per cent rise in organic revenue this year thanks to its decision to ramp up investment in cigarette alternatives.
During the quarter the group welcomed 900,000 new customers via sales of tobacco free goods such as vapes – with value share in its e-cigarette brand Vuse up 2.8 ppts.
“We are also making good progress towards de-leveraging our balance sheet, supporting our ambition to sustainably return excess cash to shareholders,” Marroco said at the time.