Can John McAdam make a success story of Rentokil?
If John McAdam and his team are to hit the bonus jackpot at Rentokil, then shareholders will also see a huge improvement in the value of their investments. The company, once hugely popular with small investors because of its famed ability to grow earnings at 20 per cent a year, started stumbling in 2003 and has shown few signs of recovery despite two changes to management since Sir Clive Thompson, its talismanic chairman and chief executive, left in 2005. So what will it take for Dr McAdam, Alan Brown and Andy Ransom to take home as much as £31.5 million each? If the share price reaches 180p, the level where each manager would pocket £13.5 million, the team would have created £2 billion in additional shareholder value. However, it has reached that level on only two occasions in the past three years. A second reward of up to a further 3.75 million shares will be paid incrementally if the share prices rises above 180p and would be worth potentially £10.5 million if it reaches 280p. Shoul
