'Despite loss, Asciano board wants pay rise MATT O'SULLIVAN September 22, 2009
FRESH from narrowly avoiding collapse, Asciano's directors are seeking a 50 per cent increase in the pool of money they can dish out to themselves.
The debt-laden ports and rail operator revealed yesterday that its board would push shareholders at its annual meeting in Melbourne on October 23 for a $500,000 increase to $1.5 million in the kitty available to be doled out to five non-executive directors.
It will also seek shareholder approval to grant up to 3.86 million share options to its managing director, Mark Rowsthorn.
The company argued that a $1 million fee pool would ''not be sufficient to remunerate'' its board, particularly as its non-executives would increase from three to five. It said fees for non-executive directors had not increased since Asciano demerged from Toll Holdings and listed on the ASX in 2007.
Asciano's annual report, released yesterday, shows the company paid $104,905 to Marcplan Charter for the use of a corporate jet. Mr Rowsthorn is a director and majority shareholder of Marcplan.
It emerged several weeks ago that Asciano had paid Mr Rowsthorn a cash bonus of almost $742,000 and farewelled another executive with a $2.16 million golden handshake, in a year when its full-year loss widened to $244 million.
Mr Rowsthorn was paid a total of $2.7 million for the year.
Asciano bore the brunt of a shareholder backlash last year when 32 per cent of votes were cast against its remuneration report.
Since listing, it has made some blunders, including an ill-fated bid for Brambles that cost more than $100 million.'
I believe the 50% increase for the fees is fair enough. A few extra heads now in the mix means they will need a little more to share around as incentive to exceed all goals.
But screw Rowsthorn.
AIO Price at posting:
$1.74 Sentiment: LT Buy Disclosure: Held
