A review of the meo annual directors reports and statutory accounts yields the following:
Executive remuneration arrangements 2008 Competitive rewards are set to attract high calibre executives Executive rewards are linked to shareholder value A significant portion of executive remuneration is dependent upon meeting pre-determined performance benchmarks; and Appropriate performance hurdles are established in relation to variable executive remuneration.
2009 & 2010 Reward executives for individual performance against targets set by reference to appropriate benchmarks Align the interests of executives with those of shareholders Link reward with the strategic goals and performance of the Company; and Ensure total remuneration is competitive by market standards.
2011 Offer competitive remuneration benchmarked against the external market to attract high calibre executives Where appropriate, provide executive rewards linked to shareholder value; and Encourage non-executive directors to hold shares in the Company through a Share Savings Plan.
2012 & 2013 Ensure total remuneration is competitive by market standards Reward executive for exceptional individual performance; and Align interests of executive with those of shareholders.
What is Jürgen Hendrich actually being paid? FY08/09 Salary A$375k + super + A$250k sign on payment (May 2008) FY09/10 Salary A$400k + super FY10/11 Salary A$420k + super + A$150k STI FY11/12 Salary A$454k + super (= A$495k incl super) + A$125k STI FY12/13 Salary A$468k + super (= A$510k incl super) FY13/14 Salary A$468k + super (= A$510k incl super) Source: meo annual directors report and statutory accounts
Jürgen Hendrich’s annual base salary has increased +24.8% over the same period as shareholder returns have declined -80.7%. Additionally, during his tenure as CEO/MD Jürgen Hendrich has been paid A$275k in STI.
There is a substantial disconnect between Mr Hendrich’s actual performance as CEO/MD and his actual remuneration versus the company’s stated remuneration intent of executive rewards being linked to exceptional individual performance, shareholder value and alignment of executive interests with those of shareholders. How does the board account for these disconnects?
MEO Price at posting:
5.2¢ Sentiment: Sell Disclosure: Held