Seven CEO James Warburton rakes in $7m pay packet
What a difference a year makes for Seven West Media chief James Warburton.
As he handed down the group’s annual profit bump on Monday, heralding “material progress” in the group’s transformation strategy, we note too a material lift in the 51-year-old’s own bottom line.
The Mosman-based exec took home a total remuneration package of more than $7.6m for the year, up from $1.2m for FY20, thanks in large part to the group’s share price recovery from the pandemic rout.
Still, his cash component alone more than doubled to $2.3m – making that 20 per cent pay cut he took during the first wave of the pandemic last year look like a smart investment indeed.
The company’s people and remuneration committee, headed by former Crown director John Alexander, noted the awarding of a short-term incentive worth 150 per cent of Warburton’s fixed salary was “in its absolute discretion … awarded pursuant to his contract for exceptional performance”.
Shame shareholders in the group weren’t quite as upbeat about the results, sending shares down by 8 per cent in Monday’s trade, though at 48c they are still well off the lows reached post-results last year.
There will be plenty in the ranks wishing they picked up a few more shares at the bottom, especially given a new shareholding policy which came into effect on July 1, mandating directors and key management figures hold a certain portion of their fees in shares.
That’s clearly no worry for chairman Kerry Stokes, though his chief Warburton will surely be hoping he can finally convert some of his mega-holding of 22.5 million performance rights.
Trading performance to date has seen all relevant rights thrown out the window, with no rungs yet on the board when it comes to shares.
Meanwhile, there’s been other career news out of the Warburton household, as wife Nikki just months ago called time at Audi Australia after spending three years as the car group’s chief customer and marketing officer.
Still no word on her next move, though media sounds pretty attractive.
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What Kate did next
If a cult online cosmetics site wasn’t enough for Adore Beauty founder Kate Morris, it looks as if the entrepreneur is plotting her next business move.
Morris listed her beauty platform on the ASX last year in a $270m IPO, netting $46m in proceeds for both her and partner James Height as they sold down part of their equity.
In the lead-up to the release of the group’s first results as a listed entity at the end of the month, and more importantly as the couple’s remaining 21.7 per cent stake comes out of escrow, Adore told market pundits on Friday neither holder had any plans to sell down their remaining stake in the business.
“They remain committed to Adore Beauty and its future growth prospects,” a notice to the market reads.
That doesn’t mean Morris is putting all her eggs in one basket, however, with recently lodged documents revealing a new project in the works under the name of Glow Capital, with another very familiar face.
It’s none other than her chairman at the e-tailer, Justin Ryan, who only recently stepped back from day-to-day activities at Quadrant’s growth fund, though he retains several links to Quadrant companies such as Adore Beauty and Grays.com.
The two have registered several entities under the Glow moniker – with little detail yet as to just what such vehicles may invest in.
Meanwhile, the upcoming escrow release does open up the possibility of largest shareholder Quadrant and its head Chris Hadley selling down part of its 32.5 per cent stake in the $480m group, along with several smaller executive holders such as chief Tennealle O’Shannessy, financial head Stephanie Carroll and CTO Gareth Williams, among others.
Shares are still yet to hold above the $6.95 listing price, however, with sales growth in the first half taking a knock from the pandemic.
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Time out for Tanna
Former RBA board member Cath Tanna is no stranger to a high-profile position, with several heavyweight roles on her resume, including time at BHP, Shell and most recently as local boss of the Hong Kong-owned EnergyAustralia.
Doing the math on her recent career updates, however, has Margin Call’s tally coming up at naught.
By the end of the month, the Queensland-born Tanna, who has properties in both Hawthorn and in St Lucia, punches her timecard at EnergyAustralia for the last time, after passing the baton to her successor Mark Collette back in June after seven years leading the Australian arm.
That brings to an end a lucrative pay packet too – the group’s owner CLP Power, one of the largest private power companies in Asia, handing the exec $4.3m in benefits for just the six months to June 30.
Her role at the energy retailer had proven to be a hindrance in recent years, after Senator Rex Patrick, among others, called for her to resign from her public positions given the firm’s so-called tax avoidance.
But we digress, for the latest departure isn’t the only in recent months.
At the start of the year she wound up her time at the Reserve Bank, handing her spot to CSL director Carolyn Hewson, while only in June she closed the book on her service at the Business Council.
Even service to the Commonwealth’s Covid-19 Commission Advisory Board was wound up in the middle of last year.
After so many years of work, could this be the end of Tanna’s time in the corporate limelight, or just a well-earned break?
Only time will tell.
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