(Alliance News) - PZ Cussons PLC will be giving recently departed Chief Executive Alex Kanellis no financial package after an investigation confirmed "breaches of his duties".
The personal care products firm, which owns brands such as Imperial Leather soap, had said back in December that Kanellis would be leaving at the end of January .
Kanellis had been CEO at Manchester-based PZ Cussons since 2006 and had worked at the firm since 1993. He was replaced by Jonathan Myers, a former executive at Procter & Gamble Co and Kellogg Co.
However, PZ Cussons on Thursday said "certain matters" have been brought to its attention since his departure. These relate to cash withdrawals and payments made by Kanellis over "a period of years".
The board had not been made aware, and such behaviour would be "inconsistent" with that expected from a senior member of management, PZ Cussons continued. An investigation by law firm Addleshaw Goddard LLP was set up to look into the matter.
"A report has been presented to and considered by the PZ Cussons board. The board is now in a position to conclude that Kanellis's conduct fell short of that which could reasonably be expected from the CEO and constituted repeated breaches of his duties as a director of the company," said PZ Cussons.
"The board is satisfied that the financial amounts involved are not material in the context of the group and that there is no impact on or requirement to restate the financial statements for the current or any prior periods."
PZ Cussons had agreed on a retirement settlement with Kanellis which required "certain representations to be reconfirmed". However, he did not do so, meaning no payments will be made.
Shares were 0.1% lower on Thursday morning in London at a price of 183.94 pence each.
By George Collard; georgecollard@alliancenews.com
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Pz Cussons (PZC)