Paul Lembrechts has announced his resignation from struggling retail group FNG, the former parent company of bankrupt shoe chain Brantano. He did so at the end of a public meeting at which shareholders voted against a proposal for his bonus.
Shareholders rejected FNG’s pay policy with 92.4 percent of the vote. According to the proposal, Lembrechts, the former CEO of VRT, will receive a basic compensation of 1,800 euros for each working day. Additional bonuses can be added, including a “success bonus” if he successfully completes a much-needed capital repair.
Limbrechts said the refusal of the compensation policy “brings a serious problem”. It is my responsibility to draw my conclusions from it. If the vote shows that there is not enough confidence to give a signal to the CEO regarding pay, I will have no choice but to inform you that I will resign from my passing as Director and CEO.”
The future of FNG is very uncertain. After the bankruptcy of Brantano and other activities, only the Swedish web store Ellos remained. FNG has several million claims hanging over its head and there is also a criminal investigation into fraud. The listing is still pending, and it is not clear when trading will resume.
Lembrechts became CEO of FNG in July last year.