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TWR
02/07/2013 08:45
OFFICE
REL: 0845 HRS Tower Limited
OFFICE: TWR: New TOWER CEO named
2 July 2013
For immediate release
Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
NEW ZEALAND
Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia
NEW TOWER CEO NAMED
TOWER Limited Chairman, Michael Stiassny today announced the appointment of
David Hancock to the role of Chief Executive Officer.
Mr Hancock is currently - and will remain - a Director of TOWER Limited and
TOWER Capital Limited.
Mr Stiassny said that Mr Hancock was the ideal candidate to lead the company
as it completes its transition to a focused General Insurer.
"David has been a board member since November and therefore has been
instrumental in overseeing the successful strategic review process that has
resulted in the sale of TOWER's Health, Investments and Life businesses. He
has the requisite knowledge and understanding of the business and will
provide invaluable leadership as the company enters an exciting new phase,"
Mr Stiassny said.
Current Group Managing Director, Rob Flannagan announced his resignation in
March and has now resigned from the Board of Directors. However, he will
remain with TOWER for a short period to effect a smooth transition to Mr
Hancock's leadership.
"Rob has made a significant contribution to TOWER over the past seven years.
He has successfully led the company through turbulent times and ensured that
the business today is stronger than ever. The Board would like to thank Rob
for his service and wishes him every success in the future.
"At this time, the Board would also like to acknowledge and thank the TOWER
staff for their efforts as they implemented activities associated with the
strategic review. It has been a tough journey and the team has met the
challenge head on," Mr Stiassny said.
Mr Hancock has over 25 years of broad experience in financial services
including as a former Executive General Manager at the Commonwealth Bank of
Australia. He held several board positions at the bank including Commonwealth
Securities (Comsec), as well as external professional board positions. Prior
to that, he served in roles at JP Morgan and more recently, as Interim Chief
Executive Officer at Firstfolio Limited, an Australian listed financial
services company.
Mr Hancock will take up his position on Tuesday 2 July 2013. A summary of
the key terms of his employment is set out in the Annexure.
Ends
Michael Stiassny
Chairman
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
Annexure
Summary of key terms of employment of David Hancock
Position:
Chief Executive Officer of TOWER Limited
Commencement date and term:
The employment will be for a fixed term of two years commencing on 2 July
2013 unless terminated earlier as set out below.
Remuneration:
(a) Salary
NZ$750,000 per annum (inclusive of any Kiwisaver contributions).
(b) Short term incentive
Up to NZ$500,000 per annum if and to the extent that annual performance
measures set by the Board are satisfied.
(c) Long term incentive
Subject to shareholder approval being obtained (to the extent required under
the NZX and ASX Listing Rules), a long term incentive shall be paid to Mr
Hancock following the end of his fixed term based on a formula to be
determined by the Board within 20 days of execution of the agreement which
will be based on total shareholder returns and an agreed share price.
(d) Relocation
TOWER will provide Mr Hancock with certain benefits and reimbursement of
expenses with respect to his relocation from Australia to New Zealand to
perform the role and his repatriation to Australia at the end of the fixed
term.
Termination:
Mr Hancock may terminate his employment during the fixed time by six months
written notice.
TOWER may terminate Mr Hancock's employment during the fixed term by three
months written notice or immediately in the case of serious misconduct or
serious neglect of his duties, if he is convicted of a criminal offence,
disqualified from being a director or no longer meets TOWER's fit and proper
test.
Termination benefits are included in the contract which are payable on
certain termination events occurring (including redundancy) and which
generally include the payment of the lesser of twelve months' salary and the
salary for the remainder of the fixed term (or six months' salary if there is
less than six months remaining of the fixed term).
End CA:00238104 For:TWR Type:OFFICE Time:2013-07-02 08:45:36
