Sitting uncomfortably at DFS

SHAREHOLDERS in furniture firm DFS will not be best pleased to hear that the contract of founder Lord (Graham) Kirkham 'terminates automatically on retirement in December 2004'.

This piles the pressure on them to accept Kirkham's £496m offer to take the company private, even if they think it is stingy.

If investors do not accept the 445p-a-share bid, they face the prospect of executive chairman and sofa guru Kirkham quitting three months later.

It is not surprising that some feel railroaded. DFS has agreed to pay Kirkham a £4.8m inducement fee if its recommendation is withdrawn or if a rival bid succeeds.

Directors got a 10% pay rise in July, with Kirkham's salary rising from £450,000 to £495,000.

Options will vest regardless of performance targets, so chief operating officer Jon Massey will get £150,000.