Executive Summary: November 18, 2009
By Scott Rochfort | smh.com.au | 18 November
The Macquarie Group has provided some plain English material for shareholders to mull over in relation to the proposed pay rearrangements for its staff, including the group's chief executive, Nick Moore.
Some snippets from the silver doughnut's easy to digest 51-page notice of meeting include: "A flexible plan structure that allows grants of restricted shares, RSUs, DSUs and PSUs, will enable Macquarie through the MEREP to offer substantially similar economic benefits to staff across multiple jurisdictions, with different tax rules for employee equity and different securities laws."
Clarifying its plans to switch to remunerating its staff with more shares rather than cash to retain them, Macquarie added: "The MEREP will initially comprise a portion of the 2009 retained profit share and transitioned amounts."
To make the issue crystal clear, Macquarie warned that if the proposed pay arrangements were not approved by shareholders "higher cash payments to executives and [there would be] reduced alignment with shareholders in at least the short term".
Under the proposed changes, first flagged in May, Macquarie said it expected less than $500 million would be set aside to help establish its Macquarie Group Employee Retained Equity Plan (MEREP).
MOORE PLEASE
Nick Moore might also struggle to boast about how measly his pay is in the coming year.
After the release of last year's annual report six months ago, Moore grinned for the cameras when it was disclosed his "total remuneration" slipped from $26.8 million to $290,756.
The notice of meeting dispatched yesterday says Moore, under the new arrangements, will be granted a "maximum" 472,937 retained share units worth $17.2 million.
The extra 38,300 performance shares granted to Moore will be measured against the performance of Australia's big four banks, the hugely successful Suncorp Metway along with the financially robust Bank of America, UBS, Morgan Stanley and Citigroup.
Macquarie needs to achieve compound average annual growth in the 75th percentile of the reference pack for all of Moore's performance shares to vest.
If it only manages to get in the top half, only 50 per cent of the performance shares will vest.
MUSIC SOURS
Qantas had a few extra hands on deck when its Amadeus reservation and check-in software system crashed on Monday evening.
The system malfunction was on the same day Qantas met union officials to show off its plans to embed microchips with its frequent flyers (instead of issuing boarding passes).
But the so-called Airport of the Future program suddenly turned into the Airport of the Propeller Age, with even boarding passes having to be handwritten.
"Everyone had to revert to the good old days of writing out tickets and baggage tags," said Linda White, from the Australian Services Union.
Meanwhile, the search for the culprit behind the worldwide Amadeus reservation system meltdown was narrowed down to Finnair. It is believed the system was thrown into chaos when several Finnair flights were cancelled because of a pilots' strike.
LYRICAL TWIST
A verse is being circulated in Wall Street in tribute to the investment banking gods at Goldman Sachs - another firm being tested against Nick Moore's performance shares.
Our chairman,
Who art at Goldman,
Blankfein be thy name.
The rally's come. God's work be done
On Earth as there's no fear of correction.
Give us this day our daily gains,
And bankrupt our competitors
As you taught Lehman and Bear their lessons.
And bring us not under
indictment.
For Thine is the Treasury,
the House and the Senate
Forever and ever.
Goldman.
GREAT OUTDOORS
The listing of the adventure clothing brand Kathmandu seems to have suffered its first casualty. Seen hobbling down George Street with one sandal and without a bow-tie yesterday was the retailer's chairman, James Strong.
First published by Smh.com.au on November 18 2009
Visit smh.com.au for the latest news updated throughout the day
