Hi All Don't know what is going but wtf - the board has agreed...

Hi All

Don't know what is  going but wtf - the board has agreed to pay Baker more money than DW???

Baker's contract is Total fixed remuneration: $470,850 per annum (comprising base salary of $430,000 and superannuation of $40,850), subject to review from time to time.  PLUS
• Variable remuneration: Eligibility to be considered for an annual incentive award of up to 100% of his total fixed remuneration.

So that is $941, 700 pa. with no mention that the 100% bonus is in shares (that is, is can be $941, 700 pa in cash).

Last FY, DW was paid a grand total of $ 818,420 (which included $278,143 in STX shares)

So Baker's package is potentially circa $123,000 more than DW was paid last FY! All in cash and can be paid under the short term incentive program.

Well, Baker, I dont know you have a bar of soap or a candle stick maker for that matter, but you better f_)k*n deliver one hell of a deal to earn this coin - you have never been an MD before and you are now on more than DW - talk about rub more salt into the DW exit wound.

ALSO of note is that the termination clause FAVOURS Baker?  That is:

Strike can immediately terminate the agreement at any time for cause (ie. serious, wilful or persistent misconduct by Mr Baker). If there has been (or will be as a result of the planned sale or transfer of some or all of the assets of any business of Strike), in Mr Baker's reasonable opinion, a material reduction in Mr Baker's authority, status or responsibilities, or if Mr Baker's reporting line is changed such that he no longer reports to the Board, Mr Baker can terminate the agreement for redundancy and, subject to Mr Baker entering into a deed of release with Strike, Strike will pay Mr Baker an amount equal to 12 months of fixed remuneration

This is one friggin generous termination clause and solely at the discretion of the board.  A deed of release is very different to a non-compete clause.  Essentially, if Baker pulls off a deal (which might be just a farm down and loss of operatorship (i.e. loss of status for Baker's MD gig) he is up for a big fat bonus.  

Something is in the wind - personally I think the air stinks a little bit.  Lets just hope the deal will be as lucrative for SH (other than just Carnergie)...

Adl