By NZPA
Tuesday 18th December 2007 |
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When he assumes his role on March 17, he will become one of the highest paid executives in the country.
Potentially, he will be able to earn $3.7 million a year, equivalent to $71,153 a week, on his salary and bonus incentives (although at least a third of the bonuses will be paid in shares).
Telecom's new boss Paul Reynolds is on an annual salary package of up to $3.5m -- $600,000 more than his predecessor Theresa Gattung earned.
Dr Reynolds is also in line for a long-term incentive -- up to $1.75m in performance share rights.
Morrison's base salary is $1.3m with annual performance bonuses worth up to another $1.2m. He will be able to earn up to another $1.2m a year in share options with a zero exercise price as a long-term incentive. The first "long-term" bonus period worth $1.8m is for 18 months.
He also gets a "commencement grant" of 200,000 shares, worth $900,000 at today's price, if he remains employed by Sky after two years.
Given Sky is currently under consideration for takeover, Morrison has negotiated a series of golden parachute clauses.
If Sky terminates his job within the first year of his employment he will be paid the equivalent of two years' pay and if it terminates before two years is up, his commencement grant will be immediately be paid up.
And if there is a "fundamental change" that results in a substantial diminution of Morrison's role, status or responsibility, including that he is no longer CEO of a publicly listed company, he has generous parachute provisions.
Morrison also gets paid his relocation expenses from Hong Kong and will be provided with up to eight business class flights per year between Australia and New Zealand for the first two years of his employment.
Sky's Australian chairman Rod McGeoch told NZPA there was "nothing generous" about Morrison's package.
"We are in an international businessplace here. This is not the first time that New Zealand has had to face up to the fact that if it wants top talent it's got to pay international levels of remuneration.
Sky had employed international consultants to check out the package who found it "reasonable"..
"We have taken international advice that this is a reasonable remuneration package for this sector in this part of the world.
"If you don't have the best people you can't expect the best results, McGeoch said.
He said the fundamental change clause was necessary in the current climate where Sky might be taken over.
"It's the result of a good arm's length negotiations between our respective advisers."
Morrison, who has been chief operating officer of a Macau casino group with turnover of $HK30 billion (NZ$5 billion), said his package was heavily dependent on performance.
"Basically, I go backwards if I don't perform."
"I have to deliver substantial shareholder value for me to realise a significant remuneration. I don't get paid significantly until I start delivering long-term shareholder value."
He said if someone took over Sky, it was not automatic he would leave the company.
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