Vivendi chief under fire over stock options

Pressure mounts on French CEO...

By Kate Hanaghan, 15 April 2002 08:40

NEWS Vivendi Universal's CEO Jean-Marie Messier has been hit by further disapproval as he lines up the company's top executives for stock options worth £1.2bn. Against a backdrop of internal management wranglings, debt totalling E19bn and a share price that has lost 40 per cent this year, Messier is under pressure to make changes or head for the door. The battle over the huge stock options began when Messier issued orders to senior management to defend the controversial plan, which will seek official shareholder approval at a meeting on 24 April. Messier has argued that in the highly competitive media industry creative employees should be rewarded accordingly to prevent them leaving to join competitors. But the odds are stacking against the CEO and his controversial management style. Messier is under further scrutiny after the COO of Vivendi-owned subsidiary Canal Plus resigned on Friday amidst growing tensions. The departure of Denis Olivennes leaves a significant hole in the upper echelons of the media group's senior management. Some have accused Messier of being a megalomaniac and in February he turned on the press blaming the company's poor share price performance on negative media coverage.

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