SunRice chief executive Rob Gordon set for shares bonus

SunRice boss Rob Gordon could get more than 500,000 shares under a lucrative incentive scheme, but not everyone is happy with the plan, which would see him become one of the company’s biggest shareholders.

Rob Gordon will end up being the seventh biggest shareholder in SunRice, the company he runs, if he meets performance targets.

SUNRICE chief executive Rob Gordon is set to become the seventh biggest shareholder in the company he runs if he meets his performance targets by next May.

If Mr Gordon meets the targets, he will receive 507,932 B-class shares to add to the 123,084 he already holds.

With 631,016 shares, he will hold 1.04 per cent of the total number of SunRice shares on issue, well behind the biggest shareholder, Australian Food and Agriculture Company, with 2.3 million shares, or 4 per cent of the company.

And with SunRice chairman Laurie Arthur flagging a new long-term incentive plan for Mr Gordon involving more share rights from next May, if it is as lucrative as the current plan, the rice processor’s MD could quickly become the third biggest shareholder in the company and hold more shares than the rest of the board combined.

The performance targets include achieving progress on the five-year strategic plan put in place in 2017 and meeting budgeted paddy prices paid to growers.

The revelation comes as one grower hit out at Mr Gordon’s remuneration of $3.34 million for 2019-20, making him one of the highest paid chiefs of all agribusinesses listed on the Australian Securities Exchange.

Berrigan grower Michael Hawkins said Mr Gordon’s remuneration was excessive, particularly because the industry regularly goes through a boom-bust cycle and SunRice’s profits were declining.

“It is high, especially since our profit is about half normal,” Mr Hawkins said.

“He will end up with about 1 per cent of the company. That horrifies me.”

SunRice’s revenue was $1.13 billion in the 12 months to April 30 this year and its after-tax profit was $22.7 million, well below the previous year’s profit of $32.8 million and $45.1 million in 2017-18.

Mr Gordon’s base pay this past year was $1.38 million but he picked up $1.04 million as a cash bonus in his $3.34 million total remuneration, which includes the yet-to-be-paid incentives.

By comparison, Incitec Pivot Limited’s managing director Jeanne Johns had total remuneration of $3.21 million in 2019, with company revenue of $3.9 billion and NPAT of $152 million.

Mr Johns holds about 0.1 per cent of IPL’s scrip.

Mr Arthur said Mr Gordon’s remuneration was benchmarked against other companies.

“His based pay is median and his incentive pay below others,” he said.

“We believe he is appropriately paid.”

Mr Arthur said Mr Gordon’s contract expired next May but the board was already negotiating its renewal.

“There is a market for top executive talent and it’s an international market,” he said.

“The board believes Rob is a top operator.

“We used to pay the incentive in cash but we are now requiring him to take it in shares.”

SunRice holds its 2020 annual general meeting on Friday.

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