Gent clears Esser over bonus

Chris Gent testified today that he had never discussed bonuses with Mannesmann boss Klaus Esser during Germany's first criminal trial over executive pay.

The former Vodafone chief read a prepared statement to the Dusseldorf regional court during the trial of Esser and five others on charges of breaching shareholders' trust.

"Never once have severance payments or retention payments been mentioned by Esser or myself before his agreement to the takeover," Gent said. He added that he regretted the fact that Esser was subject to unfair criticism.

Gent spent three months overcoming Esser's opposition to the deal. Esser maintained that he only agreed in the shareholders' best interests and had sacrificed his career. Mannesmann shareholders won a minor bonanza when the $180bn deal went through.

And, during the battle for the company, Esser effectively ruled himself out of the job of co-CEO by making it clear that he totally disagreed with the Vodafone strategy. He was widely criticised for losing one of the jewels of German industry.

But Esser and the rest of the Mannesmann six are not out of the woods yet. The five member court will decide next week whether the €57m worth of bonuses awarded to the six could be in the interests of a company that was later 'destroyed'.

The trial, which started in late January, is scheduled to last five months.