Engineering services company UGL Limited (ASX:UGL) has responded to media reports regarding payments to CY Leung, the Chief Executive of Hong Kong.
The company says its agreements with Mr Leung were for non-compete and non-poach retention provisions and that calling them secret was misleading.
The company says Mr Leung was a private individual at the time and such agreements are common confidential commercial arrangements when a business is being acquired.
The company says Mr Leung was previously CEO of DTZ Holdings North Asia which was acquired by UGL out of voluntary administration in December 2011.
UGL says they made the agreement with Mr Leung to protect the company’s commercial interests by preventing him from competing with DTZ for two years.
UGL reported a net profit of $68.5 million in the 2014 financial year.