Treasury Wine Estates half yearly results

Treasury Wine Estates today announced a fixed remuneration increase for the MD/CEO Michael Clarke, taking his fixed remuneration from $1.7 million to $2.2 million (with effect from 1 March 2016). What makes this announcement of interest is that the Board has brought forward a remuneration review contractually scheduled for 1 September 2016 (aka during FY17). Fixed remuneration increases typically flow onto the size of short term incentive awards when, as is the case at TWE, such awards are based on a percentage of fixed remuneration. I take a look at the remuneration implications in this note (VIEW LINK) Today's announcement also indicated a grant of 44,455 performance rights to make-whole the previous equity grants under the LTI scheme. The equity raising to fund the Diageo Wine Business acquisition triggers the provisions in the LTI scheme for just such an adjustment.