Annex N
Letter to Mr Geoffrey Robinson MP, TransTec,
from Mr Michael Stoney, Pergamon AGB plc
RE:
MANAGEMENT
CONTRACT—LOCK
INTERNATIONAL
I refer to your letter of 26 May 1990 to Kevin Maxwell
in connection with the above, and I am sorry I did not have the
chance to discuss this with you further after the Central &
Sheerwood Board meeting.
Whilst I believe the basis management charge of £200,000
per annum is acceptable, I believe that any profit related element
should have an incentive attached to it. In other words, the more
Lock makes the more Transtec benefits.
In addition, this profit element should have a base
figure which will increase from year 1 to year 2 to reflect the
hope for a turnaround in the fortunes of Lock. My proposal to
you of 23 May 1990 tried to cover this.
Perhaps you could re-think your views on this. I
would be only too happy to meet you if you feel that this would
be of benefit.
29 June 1990
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