Diploma Group has developed a new remuneration package for managing director Nick Di Latte with a lower base pay but new performance incentives as it prepares to face shareholders at its annual general meeting next week.
Diploma Group has developed a new remuneration package for managing director Nick Di Latte, with a lower base pay but new performance incentives, as it prepares to face shareholders at its annual general meeting next week.
Diploma told the market today Mr Di Latte had agreed to take a $180,000 cut in his all-inclusive base remuneration, which will fall from $475,000 to $295,000 per annum.
However, the group will ask shareholders to approve the issue of 10 million shares to Mr Di Latte as part of a loan-funded share scheme.
The shares will be issued in three tranches at 125 per cent of a 10-day volume-weighted average price linked to number of years served.
Mr Di Latte will also receive a short-term cash-based incentive package on performance criteria linked to current-year earnings targets.
Diploma said the board was conscious of including significant performance-based incentives, ensuring remuneration was aligned with long-term shareholder value and reducing fixed operating costs.
The company recorded a $1.6 million net profit after tax in the 2013 financial year, following a $25.5 million net loss in FY12.
Diploma received a first strike from shareholders against its remuneration package in 2011 but avoided a second strike at last year's annual general meeting.
Its shares were steady at 3.9 cents at 10:55am WST.