Agribusiness chief renews contract
In return for navigating listed agribusiness company Forest Enterprises Australia (FEA) through what is likely to be a challenging year, chief executive Andrew White will potentially receive salary and bonuses totalling more than $890,000.
White has renewed his contract with the listed agribusiness company for an unfixed term, rather than signing on for a three-year period as he has in the past.
White’s non-discretionary remuneration consists of a salary of $485,500 per annum, including statutory superannuation. This amount is set to increase annually by at least the amount of the rise in the consumer price index in Hobart, where the company is located. But a statement by the group to the ASX said White had requested this increase not be applied this year, as he is “conscious of the salary restraint across the company as well as the global financial crisis”.
White’s discretionary income consists of $409,000 per annum subject to the meeting of key performance criteria set by the board.
According to the group’s unaudited forecasts, FEA is expected to report a net loss after tax for the year ended June 30 in the range of $6-$8 million. The group had new forestry investment sales of $23.3 million for the financial year, but these sales were lower than anticipated, which the group attributed to the flow-on effect of the collapse of Great Southern and Timbercorp, as well as higher financing costs, among other issues.
The group has bank debt of $190 million.
Elders Limited owns 31 per cent of FEA, with Elders anticipating a loss of $2-$3 million for the 2008-09 financial year on its investment.
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