23/10/2013 - 07:30

Emeco appoints new managing director

23/10/2013 - 07:30

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Mining services group Emeco Holdings has recruited Aurizon executive Ken Lewsey as its new managing director, on a package that will make him one of the top 25 best-paid executives in Perth.

Newly appointed Emeco managing director Ken Lewsey.

Mining services group Emeco Holdings has recruited Aurizon executive Ken Lewsey as its new managing director, on a package that will make him one of the top 25 best-paid executives in Perth.

Mr Lewsey will take over from outgoing boss Keith Gordon effective from November 4 this year.

He was most recently the executive vice-president of business development at Aurizon (formerly QR National), and held a number of operational positions from 2009 until August this year. This included being CEO of Aurizon's Freight Group, which has 4,000 employees and annual revenue of $1 billion.

Mr Lewsey has also held executive positions at Brambles Industrial Services, Cleanaway Industrial, Smorgon Steel and BHP Steel.

Emeco chairman Alec Brennan said Mr Lewsey has demonstrated a strong track record in the industry of achieving value and creating growth through understanding and meeting customer needs.

"After an extensive search, the board is delighted to appoint Ken to the position of managing director. We feel his leadership, business development and industry experience are ideally suited to Emeco and we look forward to Ken leading the company through its next phase of development," Mr Brennan said.

Mr Lewsey's package includes fixed annual remuneration of $850,000 inclusive of superannuation. That is 7.5 per cent lower than Mr Gordon's fixed remuneration ($919,360) but is high by Perth standards.

In Business News' 2012 CEO salary survey, only 23 WA-based executives had a base salary of $850,000 or higher.

To put that in perspective, Emeco has a current market capitalisation of $204 million, making it about the 63rd largest company in the state.

Gindalbie Metals, which has a market cap of $224 million, recently appointed Rio Tinto executive Dale Harris as its new chief executive on a base salary of $600,000, inclusive of superannuation.

Mr Lewsey will be eligible for a short-term incentive up to 100 per cent of his fixed remuneration, and a long-term incentive up to 75 per cent.

These are the same as for Mr Gordon, but with one adjustment; the first 25 per cent of the short-term incentive will be paid as Emeco equity rather than cash.

Mr Lewsey said in a statement he was delighted to have been appointed to the new role.

"I am excited about the prospect of leading Emeco through the prevailing conditions and implementing strategies to further grow the business. I am committed to ensuring the disciplined approach to balance sheet management continues as we enhance our operations in order to meet customers’ needs," he said.

Emeco provides heavy earthmoving equipment rental solutions to mining companies and contractors in Australia, Canada, Chile and Indonesia.

Emeco shares were up 5.2 cents at 33.7 cents at midday. The stock was as low as 16 cents in August.

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