Chief executives’ free rides need more scrutiny

by Adele Ferguson, for Sydney Morning Herald, January 6, 2010.

As the sharemarket jumped almost 1 per cent yesterday and business groups went into overdrive against key parts of the Productivity Commission‘s report on executive pay, the chief of one of the country’s biggest listed IT services companies was overseas, no doubt content with how much money he had made in the past year and how much more he would make if he won shareholder approval for a share placement.

This month Denis Mackenzie and the rest of the CSG board will gather at Darwin Airport Resort to seek shareholder approval for a share placement to Mackenzie as part of a $65 million equity issue the company unveiled just before Christmas.

If the sharemarket remains buoyant and CSG’s share price continues to rally, shareholders will in effect be voting on whether to give Mackenzie a $4.5 million bonus. The reason is simple – the placement being offered to Mackenzie is 7.5 million shares at $1.60, compared with the present share price of $2.19…(continue reading)


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