Orica FY2015 results: a 'good enough' year of performance?

Kym Sheehan

The Executive Remuneration Reporter

Orica released its FY2015 results this morning: while revenue from continuing operations of $5.7 billion is down slightly on the pcp (FY14: $5.78 billion), underlying NPAT on continuing operations of $417.2 million is down 26% on FY14. Statutory NLAT of -$1.267 billion includes $1.169 billion in assets impairments. STI awards were paid at around 32% of maximum to the continuing executives. Clearly this is not for EBIT and NPAT performance, but for safety performance, cash conversion and gross margin performance, plus meeting those transformation targets on cost and headcount reduction. Andrew Larke, former Executive Global Head of Chemicals, Strategy and Planning - and now CEO of IXOM following the sale of the chemicals business by Orica - received $3.3 million as a cash bonus, paid in three tranches: board approves sale, sale successfully completed and 6 months after sale completed. Ian Smith, former MD/CEO (to 23 March 2015) received $2.5 million in termination payments but no STI. Former Finance director Craig Elkington received STI of $678,500 to reflect his role in chemicals business sale.


1 stock mentioned

Kym Sheehan
The Executive Remuneration Reporter

With a background in human resources, executive search and corporate law, Kym Sheehan brings unique perspectives on corporate governance and meeting resolutions to her work for The Executive Remuneration Reporter. The Executive Remuneration...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter