Retention Agreements: Evolution Mining's Executive Chair

Kym Sheehan

The Executive Remuneration Reporter

I'm not a fan of retention agreements. The usual reason I cite is that they do not stand in the way of a superior outside offer and my earlier wire on Transpacific Industries illustrates this aspect. (VIEW LINK) Today's announcement from Evolution Mining illustrates another aspect: they can be used to boost remuneration outside the typical remuneration arrangements in place (fixed remuneration and variable remuneration). Evolution Mining has entered into a three-year retention arrangement with Jake Klein with the company to issue 3.75 million performance options to Klein and while today's announcement indicates these will be subject to the rules of the Employee Share Option and Performance Rights Plan, the only performance condition attached is continued employment to the date of vesting. Mr Klein and EVN have agreed to forego base remuneration increases or changes in the remuneration structure for the three years of the agreement...but with base of just over $1 million (including SGC super), STI opportunity of around 70% of base salary and annual LTI grants (1,397,197 rights approved at the 2015 AGM), this is just extra lolly.


1 topic

1 stock mentioned

Kym Sheehan
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.

Comments

Sign In or Join Free to comment