Velocity Boss Set For Big Bonus
What happens if PS gives him the boot? He saves $10 million?
Here is the explanation from the Annual Report. Looks like he got an equity deal that was triggered if one of the partners sold.
From the 2016 Financial Report
2019
From the 2016 Financial Report
The Velocity Frequent Flyer LTI relates to a right to receive a variable number of Co-Investment Participation Notes in Velocity Frequent Flyer Holdco Pty Ltd. The Co-Investment Participation Notes (CPN) convert into ordinary shares in Velocity Frequent Flyer Holdco Pty Ltd on an Exit event. 5,000 CPN rights and 40,000 Profit Participation Notes (PPN) rights were granted to CEO Velocity Frequent Flyer on 14 December 2015 and no rights have vested or lapsed during the year. The fair value per right net of face value paid at the time of grant is $0.57 CPN and $36.03 PPN. The exercise price per right is $nil.
Velocity Frequent Flyer Long Term Incentive granted in prior financial years. The CEO of Velocity Frequent Flyer participates in the Velocity Frequent Flyer LTI Plan granted in the 2016 financial year. The Velocity Frequent Flyer LTI Plan is a profit participation plan which requires participants to acquire a number of Co-Investment Participation Notes (CPNs) at face value. Participants are then issued additional rights referred to as Profit Participation Notes (PPNs). Under the plan, participants benefit in upside business performance in the event Velocity Frequent Flyer investors (the Virgin Australia Group and Affinity Equity Partners) exit from their investment in Velocity Frequent Flyer. Participants will only be eligible to receive such a benefit from PPNs held if previously defined performance hurdles are met upon a pre-determined exit event. The benefit payable will depend on the number of PPNs issued to the participants and the value of the PPNs which is linked to pre-agreed hurdle rates in the disposal value earned by investors. In the event that a benefit becomes payable, the participant may be issued further rights in Velocity Frequent Flyer Holdco Pty Ltd or the Velocity Frequent Flyer Board may exercise its discretion to pay this entitlement in cash. This plan is subject to continued employment and good leaver provisions.The LTI value at target for the CEO of Velocity Frequent Flyer is indeterminate due to the nature of PPNs with no predefined exit or vesting date. The 2018 LTI benefit of the CEO of Velocity Frequent Flyer has been restated to correctly include historical distributions to equity holders in the estimation of the disposal value that might be earned by the investors when assessing the achievement of the performance hurdle rates. The effect of the restatement is to increase the LTI benefits and total remuneration by $54,947 in the year ended 30 June 2018. There has been no change to amounts paid to KMP. This adjustment is only to estimate the value that might be earned should a qualifying exit event occur
Interesting background... but seriously, how DARE they pay an exec that amount of money when they are getting rid of people because of mismanagement by the executive team for years... how DARE ANY company do that... it really is a crap world we're living in, I bet none of the poor 750 will get that sort of pay out or the 2.5M that the MRB got.
