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The takeover of Zellerbach will enrich its officers.

In a filing with the SEC, Crown Zellerbach disclosed that its takeover by Sir James Goldsmith and actions taken by the board’s compensation committee earlier this month made options held by the firm’s executives to purchase 1.1 million shares of common stock at an average price of $29 a share immediately exercisable. The compensation committee also granted option holders the right to surrender them for stock appreciation rights that are now worth an estimated $14 each. Zellerbach’s top officers will also receive two years’ pay if they’re fired and three years’ pay if they resign within two years, the filing said.


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