December 2, 2005
Sea Containers appoints interim CEO
Sea Containers Ltd. (NYSE: SCRA and NYSE: SCRB) has announced that Its President and Chief Executive Officer, James B Sherwood, has asked to be relieved of his Chief Executive duties on an interim basis for health reasons. He will remain as Chairman of the Board.
Iain C. Durant, the company's Chief Financial Officer, will serve as CEO on an interim basis. According to an SEC filing Durant is 47 and a Chartered Accountant. Before joining the registrant, he was Group Finance Director of Thistle Hotels plc in Great Britain, and Finance Director of two U.K.-listed affiliates of the Jardine Matheson Group--Hongkong Land Holdings and Dairy Farm International.
The material terms of Durant's employment agreement, according to the filing, are an annual salary of GBP 275,000 ($475,000) and termination by either party on 12 months' notice.
Sherwood recently underwent successful surgery and has now returned to the office on a part time basis. He and the rest of the board feel that implementation of the company restructuring program which was announced on November 3, 2005 plus supervision of day to day operations should not be delayed pending his full time return to the company. The board met on November 25, 2005 and agreed to Sherwood's request that the Chief Executive role be transferred to Durant, who has been performing this role during Sherwood's hospitalization.
Sea Containers is undertaking an extensive restructuring after disappointing results that led to Sherwood describing 2005 as "regrettably a 'perfect storm' for the company," with all three of its main business encountering unanticipated difficulties. For the nine months ended September 30, 2005, the company lost $58.5 million
Sea Containers says a previously announced search for a new Chief Executive is now well advanced and it is hoped that an appointment will be made early in the new year.
Durant said, "I am happy to assume this new responsibility on an interim basis and can assure investors that the restructuring program is being pursued with full speed."