http://www.theaustralian.news.com.au/business/story/0,28124,25753288-36418,00.html
The Australian, 9 Jul 2009, aap
SP AusNet boss's pay leaps 60pc as profit plunges
SINGAPORE-BACKED SP AusNet has
defended a 60 per cent jump in annual remuneration for its managing
director despite a fall in the company's security price and profit over
2008-09.
Stapled security holders gathered yesterday for the company's annual
general meeting in Melbourne to vote on its remuneration report and
other resolutions and to hear a yearly update from its key executives.
SP AusNet remuneration committee chairman George Lefroy told the
meeting he was aware of investor concerns about the plan to increase
managing director Nino Ficcau's annual pay.
"I would like to acknowledge security holder and community concern and
interest in executive remuneration particularly in these challenging
times," Dr Lefroy said.
There was an outcry in May when SP
AusNet, which is backed by Singapore Power and runs Victoria's
high-voltage electricity transmission network, said it would award Mr
Ficca a $412,461 cash bonus, despite the utility posting a 6.7 per cent
dip in its net profit for this financial year.
Dr Lefroy told shareholders yesterday Mr Ficca had been rewarded for "operational excellence" and the role he played in developing business strategy and "guiding and driving specified business outcomes".
Mr Ficca's total reportable remuneration for 2008-09 had risen by 60
per cent to $2.4 million, from $1.5m last financial year, he said. "The
key reason for this increase is the long-term incentive plan," Dr
Lefroy said.
He stressed that the reportable remuneration was not the same as
take-home pay because it included accounting valuations for current and
historical equity grants that may or may not materialise.
The managing director's remuneration package included fixed
remuneration of $802,000 an on-target short-term incentive of $401,000
in cash, and a maximum long-term incentive payment of about $750,000,
which he must convert on-market into securities.
Dr Lefroy he said a review in May last year showed a correction was
needed in directors' fees and the salaries of the managing director and
other executives, for it to remain competitive.
The remuneration jump for Mr Ficca comes despite the company's stapled
securities price falling to 88.6c at the end of its March year, from
$1.20 a year previously. SP AusNet shares fell 0.5c yesterday to 77c.
Despite the protests, security holders later voted in favour of the
company's remuneration report.
Mr Ficca told the meeting his company report card for the year had included a number of positive achievements.
The net profit result, the connection of 26,400 new customers, the
refurbishment and upgrade of key transmission stations and a high level
of customer satisfaction were among the year's highlights, he said.
SP AusNet's power infrastructure was affected by the fatal Victorian
bushfires earlier this year. Some Kinglake residents affected by the
fires have launched a class action against SP AusNet, alleging faulty
power lines started some of the blazes. The firm is defending the claim.
============================
Latest updates @ Singapore News Alternative:
1. Singapore-backed SP AusNet Boss's pay leaps 60pc as profit plunges
2. Work starts on Singapore Downtown Line
3. More hidden sides of Singapore
4. Singapore to continue to track progress of A/H1N1 flu
5. Singapore animation piggybacks on government support
6. Adelson says Singapore casino opening delayed
7. NOL Engages In Price Fixing With 12 Other Container Lines To End Transpacific Price War
8. Lawyers in Singapore barred from hiring debt collectors
9. ‘Make education a key priority’ - Lee Hsien Loong
10. Defence ministry rethink on blacklisted firms?
11. Singapore's Official Foreign Reserves Increase In June
12. SINGAPORE AND HONG KONG LEAD THE GLOBAL ENABLING TRADE REPORT 2009
Latest videos added:
1. Riz Khan - The life and death of democracy
2. China clamps down on Uighurs - 06 Jul 09
.