Food manufacturing boss repays £1.7M bonus

23-Nov-2012 - Last updated on 26-Nov-2012 at 17:54 GMT

Chips in... The former chief executive of Diamond Foods, maker of Kettle Chips, has agreed to repay his bonus payments

A former boss of Kettle Chips maker Diamond Foods has pledged to repay two years’ bonuses and resigned his position after a financial scandal engulfed the business earlier this year.

Michael Mendes, former chief executive of Diamond Foods, based in San Francisco, California, has agreed to repay the company £1.7M ($2.7M). The money represents his bonuses for the financial years 2010 and 2011.

He will also return 6,665 shares of Diamond stock that were awarded to him after the 2010 financial year. The shares are currently worth about £52,000.

Diamond Foods said the money would be deducted from the £3.4M ($5.4M) that the firm owed to Mendes under the terms of his retirement plan.

Financial irregularities

Mendes has resigned from the firm nine months after being put on administrative leave following an internal investigation revealed financial irregularities. The irregularities forced the firm to restate its finances for 2010 and 2011.

Diamond Foods has also terminated the employment of its former chief financial officer Steven Neil.

Both executives will receive no severance pay, according to the company.

Brian Driscoll, the former head of Hostess Brands, was appointed chief executive in May.

Diamond Foods acquired the Norwich-based Kettle Chips business in 2010.