Sky City's Davies hits the jackpot

By Nick Stride

Friday 7th May 2004

Eight years of company-building has paid off for Sky City Entertainment managing director Evan Davies with a $1.8 million paper profit on the exercise of executive options.

Most of the options were issued in 1999 at exercise prices of $1.80 and $1.87, well above the market share price at that time. Sky City's shares have since climbed to about $4.43.

Net profit has climbed from $45.6 million in 1999 to $107.2 million last year. Analysts are forecasting a further rise in this June year.

Davies still has plenty of ammunition in his remuneration magazine. Last year's annual report showed he held 3.18 million options under the 1999 plan and the 2002 Managing Director Plan.

The 1999 options entitle holders to subscribe for two shares for each option exercised.

Davies' pay package last year reached $1.06 million, made up of a $700,000 base salary, a $283,000 performance-related bonus and a performance-related payment held back from a previous year.

Davies has been busy expanding Sky City this year.

Last week it bought Tainui Group's 15% stake in Hamilton's Riverside Casino, taking its holding to 70%.

Based on the price paid, research by First New Zealand Capital concluded Sky City has almost doubled its money on its Riverside investment.

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