Standing down or stood down? It makes a big difference when it comes to whether or not long term incentive payments are due.
When James Warburton took over as CEO of Seven West Media, it was clear that outgoing chief Tim Worner had resigned to make room.
“It’s with mixed emotion that I tender my resignation ...”
Worner got a loud round of thanks for his 26 years service, six of those as CEO.
Kerry Stokes, the chairman: “I know I speak on behalf of the board and all of our people in thanking Tim for his hard work.”
The latest annual report, released this month, shows Worner was paid in the 2019 financial year $2,561,444, most of it base pay.
He missed out on a short term bonus of $1.3 million because earnings didn’t hit target but there are long term incentives which may still be in play for Worner.
The previous year he earned $2,709,710, including $179,400 in short term incentives.
He also holds 3,252,570 in performance rights shares.
It is these -- worth around $1.2 million at current share price levels -- which are in question.
“Mr Worner resigned on 16 August 2019 pursuant to his employment contract, which requires Mr Worner to provide 12 months’ notice,” says the company in a notice to the ASX.
“The treatment of unvested equity is yet to be determined and will be subject to future Remuneration & Nomination Committee and Board meetings. Further information will be disclosed in the Seven West Media Remuneration Report contained in the 2020 Annual Report.”
That annual report isn’t due to be released until next year. This report will also disclose Worner’s final year payout.
Normally, long term incentives lapse if someone resigns. However, a mutual decision may mean Worner is due the bonus.
Worner holds 76,122 ordinary shares in his own name. The Worner Super Fund also holds 112,688 shares and his wife, Katrina, has 105,000 through the Worner Family Trust.
Seven West Media shares closed at $0.385 on Friday.
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