E-Malt.com News article: Australia: Foster's executives’ salary and bonus packages evolved weakly despite higher than expected 2005/06 profit

Foster’s senior executives team took a minor hit to their salary and bonus packages last financial year, despite the brewer reporting a higher than expected 2005-06 profit, The Sydney Morning Herald posted September 15.

The company's annual report, released September 14, revealed the pay packet of chief executive Trevor O'Hoy shrank $18,000 to $3.27 million because his cash bonus was almost cut in half (figures in AU$ unless stated).

But given the surge in Foster's share price in the past three weeks, Mr O'Hoy could be in the money this fiscal year. It will ask shareholders at its October 23 annual meeting to grant Mr O'Hoy 454,200 shares under his incentive plan.

"Taking account of the impact of the performance hurdle and the probability of the maximum performance standard being achieved, the estimated value of the right to participate to the maximum of 454,200 shares is $1.112.790," the company said in its notice of annual meeting.

Foster's shares rose 8 cents to $6.33 September 14 on continued speculation the company could be subject to takeover bid from a global beer group such as Belgium's InBev or a private equity group. The shares have risen about 20 per cent in the past month.

Foster's declined to disclose how much it paid out to the former managing director of its Australian operations, John Murphy, who left on August 1. The payment was being finalised and would be reported next year, it said.

Mr Murphy could have been entitled to at least $1.4 million for his 27 years at Foster's if he took a redundancy, this year's report says. However, it is likely Mr Murphy, who received no bonus for 2005-06, could get a far larger golden parachute.

Foster's said its former managing director of Trade Americas, Dan Leese, took a payout of $US1.44 million (AU$1.9 million) based on two years pay and short-term incentives. Mr Leese, who left the company on September 30 last year, joined Foster's Beringer Wine Estates in 2001.

The company's former managing director for Europe, John Philips, received a $US1.1 million payout, also based on two years base salary plus bonuses.


16 September, 2006