Ann: 2019 Half Year Results Investor Presentation, page-20

Forager (MAH 2nd biggest shareholder) also have something to say about the big bonus Macmahon executives are about to receive. How often would the big bonuses be given in future?

Excepts from Forager’s latest monthly report:

Another of the Fund’s larger holdings, mining services business Macmahon (MAH) delivered a half-year result that seemed to set the company up to exceed its full year guidance. Revenue doubled as the company started work on its main Batu Hijau mining contract (Macmahon even scored a small bonus for
good performance). Earnings before interest and tax increased fourfold. The company is working on $4.8bn worth of contracts and may win $7bn more.

But the detail was disappointing. Macmahon has agreed an employee bonus scheme that means any upside to its guidance will largely accrue to staff. This aligns the employees to achieve the target, but means the company is unlikely to significantly outperform this year. Macmahon should have done a better job of communicating the scheme to shareholders and clearing up what, if any, bonuses to expect in future years.