Trust, communication and habits, page-11

You can't calculate it like that though because there were multiple components. Straight salary was $500k. Then there was whatever he was being paid for medical, housing and car etc - the latter of which were meant to disappear but might not have. On top of that would be any cash bonus ( shares as short and long term incentives - but this year's LTI should not be paid out because they didn't meet the hurdles and personally I'd be pretty peeved if I saw a bonus). If you recall they approved Nick a bonus of $US400k (half shares and half cash) for the previous year's effort.

On top of that we can assume that Gavin will not be paying himself as an Executive Chairman - so I'd expect a chairman's fee that is consistent with companies that are small cap, not ASX 300, not yet profitable etc. (you cant use a poorly constructed argument to pay yourself in the 75%ile of ASX materials companies when you think you can get away with it and are only in the asx300 by the skin of your teeth and then not do the right thing and adjust downwards to reflect correct comparators and the market cap (and guess where that is Gav). A quick look at comparators will tell you that means he'd get a fee closer to $100k if he was lucky rather than $200k

So if he does the right thing - lets assume he doesn't want another strike - then between Gavin and Nick we have close to the $1m in direct savings, we don't have performance shares to dish out for them and we save Washington expenses and whatever expenses Nick puts on his credit card. So probably well over $1million pa between them.

However I'd expect a remuneration review for Dirk - he has taken on the CEO role, and the rest of the team. So there would be extra cost in that - but a small dent in the savings I would think.


parsifal