daytrade diaries... oct 23/24 weekend, page-10

http://www.smh.com.au/business/paperlinx-boards-pay-draws-shareholder-ire-20101022-16y02.html

PaperlinX board's pay draws shareholder ire
Matt O'Sullivan
October 23, 2010

PAPERLINX'S board has received the biggest backlash against executive pay so far this year with more than two-thirds of shareholders voting against its remuneration report.

In a year when the paper merchant made a loss of $225 million and suffered a 20 per cent decline in its share price, PaperlinX's departing chief executive, Tom Park, pocketed a total package of $2.68 million, including a short-term bonus of $962,235 partly for ''excellent cash-flow management''.

Shareholders vented their anger at the annual meeting in Melbourne yesterday when about 67 per cent of votes were cast against PaperlinX's remuneration report in a non-binding vote. Former chief financial officer, Mark Hooper, received a $603,500 bonus last financial year on top of his $726,279 base pay.

Advertisement: Story continues below A director, James Hall, also felt shareholder ire over the company's performance. About 30 per cent of votes were cast against his re-election to the board

Chairman David Meiklejohn issued a statement after the meeting, saying: ''We hear our shareholders and their views on last year's remuneration report and have been taking action.''

He said the bonus paid to Mr Park reflected the ''strong performance with respect to cash management''.

But to rub salt into shareholders' wounds, Mr Park will pocket a termination payment of almost $1.9 million when he officially leaves the company next week.

He will be replaced by the boss of PaperlinX's European operations, Toby Marchant.

Executive pay is likely to be high in the minds of shareholders of other companies next week when the season of annual meetings gets into full swing.