Fletcher's Ling gets his bonus back as profits return

Friday 24th September 2010

Fletcher Building chief executive Jonathan Ling got his bonus back this year after the biggest company on the NZX returned to profit.

Ling’s total pay was $2.71 million in the year ended June 30, made up of his base salary of $1.26 million, a short-term incentive of $1.23 million and $220,000 from the 2006 executive performance share scheme, according to the company’s annual report.

He also received 75,937 as part of his long-term incentive plan, worth some $624,000 at the date of issue.

That’s in a year when the construction company returned to profitability with building products and laminates reported a record jump in earnings.

In the 2009 financial year Ling only made his base $1.25 million salary after missing his targets when the company wrote-down $360 million from its underperforming Formica unit in the US, which caused Fletcher’s first loss since 2001.

The shares fell 0.7% to $8.56 in trading today, and have gained 7.6% this year.

Executive salaries are often in the headlines, and this year has been no exception after Telecom Corp. chief executive Paul Reynolds took a $2.1 million pay-cut to about $5 million after his bonus was slashed by two-thirds.

Though Telecom was profitable through the year, it was plagued by ongoing problems with its new mobile network and spent much of 2009/10 in a showdown with the government over whether it could participate in the State-funded roll-out of an ultra-fast broadband network.

Businesswire.co.nz

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