Fortescue’s founder, Andrew ‘Twiggy’ Forrest, made quite a statement last November when he appointed Elizabeth Gaines as the miner’s new chief, and Julie Shuttleworth, as her deputy.But Twiggy’s private quest for social equity and justice can only go so far in a workplace where the “leaner and meaner” mantra reigns supreme.
So the issue of pay parity for the new female boss, who replaced Nev Power this week, was a non-starter in this environment.Which might be why Fortescue chose to announce Gaines’ pay packet on the same day as its half-year results. The miner reported a fall in revenue, earnings and a lower than expected dividend thanks to falling prices for its low quality iron ore.
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New Fortescue chief Elizabeth Gaines. Photo: Trevor Collens
Gaines' base pay will be $500,000 less than Power’s $2 million salary.
And the structure of the incentive package - which is similar to Nev’s - ensures her total potential remuneration will fall well short.Gaines’ potential pay tops out at $5.5 million compared to Nev’s $7.25 million.
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Elizabeth Gaines Photo: John Shakespeare
"Recognising the market expectation that salary levels for incoming CEOs are typically lower at the start of their term, we believe that the base salary and incentive arrangements for our new CEO will ensure the strongest alignment for delivery of the best outcomes for shareholders," said Twiggy, who happens to own more than one billion Fortescue shares.
The 11¢ per share fully franked dividend will deliver a $110 million payout to our philanthropist and he surely won’t need to spend that much on his hare-brained rugby union competition.
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It should have given this West Australian billionaire bragging rights for the day, but Kerry Stokes might have got the better of him despite collecting a modest $43 million dividend from his conglomerate Seven Group Holdings.
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The massive share spike on Wednesday, to yet another record high - followed the release of its interim results announcement from some bloke called Ryan Stokes - added something like $500 million to Stokes' wealth in just one day. Business lounge
The good news is that the shoe was on the other foot at Sydney Airport where Geoff Culbert replaced Kerrie Mather last month.
Culbert starts on base pay of $1.5 million at the company which operates what must be the world's most lucrative parking lot - and an airport.
It is hardly economy class pay, but it is substantially less than the $1.8 million base pay of Mather who collected remuneration totalling $4.8 million for the year ending December 31, according to the annual report.
Her pay included $900,000 "in lieu of notice paid on termination date".
And it would be hard to match Culbert matching the $25 million worth of shares that Mather carried to the exit lounge on January 31. Shut shop
The boardroom window-dressing may have changed, but there does not appear to have been much change at our favourite inconvenience operator: 7-Eleven.This week CBD reported on publishing veteran Marina Go joining the board, and the company’s robust statement about any class action against the business.
On Wednesday, its legal nemesis Levitt Robinson’s Stewart Levitt came out with a press release titled: 7-Eleven Franchises fear intimidation, victimisation.
Nothing to worry about, in other words.
According to the law firm, 7-Eleven has offered to fund legal advice as to why they should not join the class action and “has threatened to counter-sue any franchisee who joins the class action".Isn't that a lovely way to run your business.Levitt cites a letter from the convenience chains’ CEO, Angus McKay, that was re-circulated to franchisees last week.“There are many reasons why fairness appears to us to require that we know who is suing 7-Eleven,” said McKay in the letter.“The issue of anonymity is a matter which franchisees are encouraged to consider carefully,” he warns.
Levitt had his own warning shot for 7-Eleven.
“The case law is clear: 7-Eleven will not succeed in obtaining details of the identity of Group Members or particulars of Group Member losses or misleading and deceptive conduct, prior to the conclusion of the initial trial,” he said.“Because of the intimidatory effect which the CEO’s message is having on some franchisees, the Federal Court Application in the Class Action seeks an order restraining the Franchisor from terminating any franchise agreement without Court permission until the proceedings have been concluded one way or another.” Elizabeth Gaines must be happy that she had an excuse to step down from the 7-Eleven board last year to focus on Fortescue.
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