Chief executive of Dreamworld owner will give $167,500 to the Australian Red Cross
UPDATE: Ardent Leisure chief executive Deborah Thomas will give her yearly bonus of $167,500 to the Australian Red Cross.
ARDENT Leisure chief executive Deborah Thomas will give her yearly bonus of $167,500 to the Australian Red Cross.
The donation comes after outrage built throughout Thursday when it became known that Ardent — owners of Dreamworld — would pay Ms Thomas nearly $850,000 in bonuses.
Four people were killed at the Gold Coast theme park on Tuesday on the Thunder River Rapids white water rafting ride.
In a statement, Ms Thomas said she had been “deeply affected and saddened” by the deaths of
Kate Goodchild, Luke Dorsett, Roozbeh Araghi, and Cindy Low at Dreamworld, especially the impact on their children and families.
“I will be making a personal donation of $167,500, which comprises my entire cash bonus, to the Australian Red Cross via the Dreamworld memorial day event. Red Cross will ensure 100 per cent is directed to support people affected by this tragic event.”
At the company’s fiery annual general meeting in Sydney on Thursday, two days after the accident, Ms Thomas refused to answer questions about her bonus, with outgoing chairman Neil Balnaves defending the decision.
Asked how she could accept “nearly $1 million” in bonuses following the tragedy, the former Australian Women’s Weekly editor snapped back at the journalist. “I’m not getting paid a million dollars,” she said.
“Four people died very recently and we are all shattered. Right now I do not want to discuss transactions. I don’t think it’s appropriate under the circumstances.”
Mr Balnaves said any bonus Ms Thomas received “relates to the prior year, a year the company performed in very good terms”. “The tragedy is only 48 hours old,” he said. “It is inappropriate to comment on commercial matters at this time.”
The company rejected calls from shareholders to defer voting on remuneration payments, even though proxy voting closed on Tuesday morning before accident.
Shareholders approved the issue of two sets of performance bonuses for Ms Thomas worth nearly $843,000, consisting of a long-term incentive and short-term incentive based on the financial year just gone.
Australian Shareholders’ Association director Alan Golden said the short-term incentive, which consisted of 50 per cent cash and 50 per cent deferred shares, should at least be reconsidered.
“The short-term incentive in particular does have a safety component and should be looked at,” he said. “What she received was 100 per cent of her short-term incentive. That would mean everything was all good, it all worked.
“Until there’s a proper inquiry we have no idea — it could be called just an act of God. But if they’re saying there’s some responsibility on the company, you would hope there was provision to claw that back.”
Mr Golden said usually the reason most companies paid deferred shares was so they had the ability to claw back the payment. Responding to the ASA’s questions during the AGM, Mr Balnaves said it had been done for accounting purposes.
“So there doesn’t seem to be the ability to claw it back for malfeasance,” Mr Golden said. “I’m not saying there is yet.” However, Mr Golden said it was “very rare” for such bonuses to be clawed back.
On the long-term incentive, Mr Golden said the payment was less certain. “That is a potential bonus that will be awarded if certain conditions are met, related to total shareholder return and earnings per share,” he said.
“Because of the way the share price is being affected at the moment, to be honest it will be difficult for those conditions to be met.
“How much money is going to be lost because of Dreamworld we can only guess. We don’t know what’s going to happen as far as patronage, lawsuits, but we do know revenue will be lower, profit will be lower, that we’re certain.”
On social media, many called for Ms Thomas to donate her bonus to the families of the victims. Others criticised the company’s handling of the bonus question. “Neil Balnaves + Deborah Thomas on that $843K bonus confirms my prejudice that TIN EARS are a prerequisite for corporate office,” Peter Fyfe tweeted.
Only fair that #ArdentLeisure and their CEO #DeborahThomas cancel all bonuses and donate the money to a fund for the #Dreamworld victims
â Benjamin King (@EricTheBeige) October 27, 2016
#Dreamworld is outdated and in need of refurbishment and the CEO of parent company Ardent Leisure gets a $860,000 bonus! Wth???? ð
â My Romance Addiction (@MyRomanceAddict) October 27, 2016
Seems the least that could happen would be for the 'Ardent Leisure' CEO's bonus to be re-distributed to families of the deceased #dreamworld
â Megan Johnson (@mjdesignart) October 27, 2016
CEO of Ardent Leisure -Can we put off discussing my bonus until enough time has passed that people won't link it to the #dreamworld tragedy?
â Colonel Kickhead (@colonelkickhead) October 27, 2016
Ardent Leisure share price & dividend rate virtually same as was when Deborah Thomas took over. 4 people dead. Gets $800K bonus #Dreamworld
â Boba Khan (@Deyterkmahjerb) October 27, 2016
So apparently 4 people dead in your theme park still qualifies you for a bonus that is 10x my salary? #Dreamworld https://t.co/NDPYme9W0H
â Dazzler3622 (@dazzler3622) October 27, 2016
Neil Balnaves + Deborah Thomas on that $843K bonus confirms my prejudice that TIN EARS are a prerequisite for corporate office. #dreamworld
â Peter Fyfe (@FyfePeter) October 27, 2016
I hope if Ardent Leisure CEO #DeborahThomas is granted an $843k bonus she donates it to the #Dreamworld victims kids
â John Psaltis (@JohnPsaltis) October 27, 2016
#Dreamworld CEO reacts angrily when suggested she turn down $850K bonus What about paying that to surviving family? https://t.co/Dfc6o9kBAM
â B Knight (@BlackKnight981) October 27, 2016
What does a pay rise have to do with the death of 4 people? #dreamworld #stopmakingitsomethingitsnot
â Nathan Corbett (@cuznate) October 27, 2016
Why is CEO about to be paid a big bonus after #DREAMWORLD ACCIDENT? $ SHOULD BE GIVEN TO MOTHERLESS CHILDREN. Maintenance issues. @ABC730
â Ecopolitics&Freedom (@JewelNature) October 27, 2016
Gobsmacked at lack of empathy from Adrent Leisure execs during their AGM. Is no one advising them on etiquette internally?! #Dreamworld
â Lana Wilson (@alannahwilson) October 27, 2016
Thought the #Ardent executives responded poorly to questioning about CEO pay after #dreamworld tragedy
â Chris Nelson (@Foolish_Flame) October 27, 2016
I am stunned, blown away that Ardent CEO took a bonus. #dreamworld That is one of the most audacious things I have ever seen. https://t.co/VuzcCVjsG5
â Russell Egan (@RussellEgan) October 27, 2016
I've been a happy shareholder for 6 yrs. I would like to have seen 25% of CEO payment donated to the 2 children #futurefund #ArdentLeisure
â John Dorrestyn (@Johndorr17) October 27, 2016
#ArdentLeisure meeting: Should we reopen? Yes we should! Need to get money to pay for our CEO...
â phunken (@phunken) October 27, 2016
It's disgusting that 'journos' are even attempting to 'grill' #DeborahThomas about her bonus or salary. It's irrelevant. #pullyourheadsin
â boourns (@boourns_) October 27, 2016
Oh, yeah, it's all #DeborahThomas' fault that 4 people are dead. She should've been in there checking each ride each morning. WTF!?
â Christina Larmer (@CALarmer) October 27, 2016