Bunge doubles executive payout amid Glencore takeover rumours

US agricultural giant Bunge has doubled the compensation for executives should they lose their jobs following a takeover, Reuters has said.

In an announcement at the end of its most recent SEC filings earlier this month, an amendment to executive pay was revealed which suggests the company is bracing itself for further takeover attempts.

The change means company executives would be entitled to a payout of twice their annual salary and bonus, as well as early payment of shares, were the company to be taken over.

It comes after Bunge rebuffed an informal approach from rival Glencore Agriculture in May. Media reports suggest an agreement is now in place that prevents Glecnore Agriculture from making another approach before the end of the year.

One of the world’s biggest agricultural firms, Bunge is feeling the pain of a tough operating environment for traders and producers. Its most recent SEC filing showed global pre-tax profits for the nine months to September 30 squeezed from $608 million to $229 million.

Speaking last week at Global Grain in Geneva, Glencore Agriculture CEO Chris Mahoney said he foresaw further consolidation in the agricultural trading space, but would not be drawn to comment further on rumours of the Bunge approach.