gobbledock
10th May 2010, 12:37
Virgin chief starts at $3.5m: John Borghetti
Steve Creedy, Aviation writer
From: The Australian (http://www.theaustralian.com.au/)
NEW Virgin Blue chief executive John Borghetti has negotiated a remuneration package worth up to $3.5 million a year. He takes the reins at Australia's No 2 carrier today.
The package is bigger than predecessor Brett Godfrey's $2.7m, but less than the $5m-plus target available to Qantas chief Alan Joyce. It is also less than the $4.9m package Mr Borghetti was on in his final year at Qantas.
The package includes base pay of $1m, up from the $900,000 paid to Mr Godfrey, and short-term incentives capable of providing an equal amount in bonuses if performance measures are met. However, Mr Godfrey also has 27 million Virgin Blue shares.
A long-term incentive plan, still subject to shareholder approval, grants Mr Borghetti performance rights averaging up to 150 per cent of base pay, provided he meets board conditions.
Virgin also revealed that Mr Borghetti would buy shares worth $200,000 under the company's chief executive investment scheme. The shares carry a two-year trading restriction and include an allocation of performance rights worth $400,000. The rights will vest if the company's 20-day weighted average share price at the end of fiscal 2013 is 25 per cent higher than at the close of trade yesterday.
There is no term to the contract but Mr Borghetti is required to give six months' notice, while the company can terminate him any time for cause or otherwise must give 12 months' notice.
Virgin Blue chairman Neil Chatfield said the package reflected Mr Borghetti's skill and expertise while ensuring a close alignment with shareholder interests.
"The net effect is that Mr Borghetti's incentives are strongly weighted towards alignment with shareholder interests," Mr Chatfield said.
"Our shareholders will be especially pleased to see his longer-term incentive program includes an innovative co-investment arrangement whereby Mr Borghetti makes a substantial personal investment in VBA.
"By making a personal financial commitment, John is demonstrating strong confidence in his ability to add value to the business."
Steve Creedy, Aviation writer
From: The Australian (http://www.theaustralian.com.au/)
NEW Virgin Blue chief executive John Borghetti has negotiated a remuneration package worth up to $3.5 million a year. He takes the reins at Australia's No 2 carrier today.
The package is bigger than predecessor Brett Godfrey's $2.7m, but less than the $5m-plus target available to Qantas chief Alan Joyce. It is also less than the $4.9m package Mr Borghetti was on in his final year at Qantas.
The package includes base pay of $1m, up from the $900,000 paid to Mr Godfrey, and short-term incentives capable of providing an equal amount in bonuses if performance measures are met. However, Mr Godfrey also has 27 million Virgin Blue shares.
A long-term incentive plan, still subject to shareholder approval, grants Mr Borghetti performance rights averaging up to 150 per cent of base pay, provided he meets board conditions.
Virgin also revealed that Mr Borghetti would buy shares worth $200,000 under the company's chief executive investment scheme. The shares carry a two-year trading restriction and include an allocation of performance rights worth $400,000. The rights will vest if the company's 20-day weighted average share price at the end of fiscal 2013 is 25 per cent higher than at the close of trade yesterday.
There is no term to the contract but Mr Borghetti is required to give six months' notice, while the company can terminate him any time for cause or otherwise must give 12 months' notice.
Virgin Blue chairman Neil Chatfield said the package reflected Mr Borghetti's skill and expertise while ensuring a close alignment with shareholder interests.
"The net effect is that Mr Borghetti's incentives are strongly weighted towards alignment with shareholder interests," Mr Chatfield said.
"Our shareholders will be especially pleased to see his longer-term incentive program includes an innovative co-investment arrangement whereby Mr Borghetti makes a substantial personal investment in VBA.
"By making a personal financial commitment, John is demonstrating strong confidence in his ability to add value to the business."