Former PGG Wrightson boss's $3 mln golden handshake

Wednesday 28th September 2011 6 Comments

Former PGG Wrightson managing director Tim Miles received a $3 million payment when he unexpectedly left the company last year, according to the company’s annual report.

Miles, who led the rural services firm for two-and-a-half years until October last year, was paid $4.3 million in the latest financial year. That was made up of the $3 million ex gratia payment, his base salary of $615,000, and a short-term incentive bonus of $703,000.

His long-term incentive scheme, which involved 2.5 million Wrightson shares, didn’t add to the balance, as he had been extended a loan to pay for the stake.

His exit payment isn’t far off the $4 million NZ Farming Systems Uruguay had to pay Wrightson to cancel its management contract with the rural services firm, when Singapore’s Olam International took control of the South American farm manager.

Miles’ departure was the last of a rapid leadership shake-up at Wrightson, with just one senior executive, who is based in South America, left from Craig Norgate’s tenure as chairman.

The new chairman John Anderson was brought in after Wrightson raised $250 million to slash debt after its failed merger with Silver Fern Farms, by installing Chinese seed and agricultural research firm Agria Corp. as a cornerstone shareholder. Agria has since taken control of the company in a $144 million partial takeover.

The shares fell 2.6% to 38 cents in trading yesterday, and have sunk 27% this year.

BusinessDesk.co.nz

Comments from our readers

On 28 September 2011 at 10:59 am Bob said:

How many bags of seed to you have to sell, or how many animals to you have to auction to make the commission / profit to pay incompetenat executives their golden handshake. What sort of message does this send the the staff. No wonder the share price is in the pits.

On 28 September 2011 at 4:12 pm Alan said:

Where was the board of directors ? The employees and shareholders should hold them accountable also .

On 28 September 2011 at 7:40 pm Danny said:

Not bad for destroying hundreds of million of shareholder value. Strange world where abject failure can be so highly valued.

On 29 September 2011 at 8:50 am Arthur said:

Plainly offensive!!! Why reward incompetance and gross mismanagement. The directors clearly failed in their duty of stewardship. One good thing is most of the obese Norgates syncophants are now gone, but at a huge cost to the long suffering shareholders.

On 29 September 2011 at 11:49 am Bill said:

One can't help wondering whether some public companies exist for the benefit of shareholders or CEOs and Boards of Directors.Paying someone more to leave than than to stay and do the job they're paid to do really sucks. Directors rarely take a reduction in fees when the produce a loss (often substantial) and destroy shareholder value

On 30 September 2011 at 9:09 am Kevin said:

Could not agree more. After seeing share price reduced by more than 25% this past year and no positive rebound in sight.....how these directors and board members sleep at night with this sort of inept direction is beyond me as a shareholder. At best it is greed.