Construction

Former CEO sues Roshn for $100m over ‘unpaid bonuses’

November 13, 2024, 5:50 PM

Grover was recruited as CEO in 2020 to lead Roshn’s construction of 400,000 homes as part of Vision 2030

Alleges wrongful termination
Appeal to higher court in Riyadh
Roshn claimed conflict of interest

The former CEO of Roshn, David Grover, is suing the Saudi property developer for more than $100 million, claiming unpaid bonuses and wrongful termination.

Grover, who lost the initial stage of his case against the state-owned company in October, has appealed to a higher court in Riyadh, the Financial Times reports.

Grover alleges that Roshn dismissed him during a period when he was due to receive performance-based bonuses and other payments tied to his role at the Public Investment Fund-backed developer.

A former executive at UK construction company Mace, he was recruited in 2020 to lead Roshn’s drive to build 400,000 homes – a core component of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, which seeks to increase homeownership among Saudi nationals to 70 percent by decade’s end.

Roshn reportedly argued that Grover’s termination in April was the result of a conflict of interest, alleging that he rented properties he owned in France to Roshn executives attending the MIPIM property conference in Cannes.

Grover says he fully disclosed his ownership to Roshn’s HR department and arranged the rentals at arm’s length. He also alleges that the company continued using the properties after his suspension.

Roshn has countered in court, alleging that Grover failed to fully declare his interests and took steps to obscure his ownership. Grover has denied this.

AGBI has contacted Roshn, the PIF and Grover for comment.

The high-profile lawsuit has drawn attention to potential challenges for Western executives working in Saudi Arabia. Winning legal disputes in the country is perceived as difficult for foreign nationals, despite judicial reforms aimed at fostering a business-friendly environment.

Saudi Arabia has actively recruited international executives for Vision 2030, many of which face high expectations and public scrutiny.

This week Neom, a $500 billion PIF-backed giga-project, replaced its CEO, Nadhmi Al Nasr, after reports of construction delays and workforce problems.

Neom’s new acting CEO, Aiman Al Mudaifer, is tasked with high-profile projects such as The Line – a horizontal city designed to stretch to 170km but now expected to reach 5km by 2030. Full completion is anticipated by 2045.

Funding pressures from fluctuating oil prices and lagging foreign direct investment have affected the giga-projects – as has a shift in focus to Riyadh, which will host the World Expo 2030.

The Saudi authorities continue to seek foreign talent, but last month the CEO of another PIF-led project – Gautam Sashittal of the King Abdullah Financial District – was also replaced. No reason was given.