Fletcher Building shares slide after exec bonuses axed as ‘prudent cost control’
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The news: Troubled building products supplier was the biggest loser on the ASX 200 in afternoon trade after the company said it had axed all non-sales and non-commission-based short-term incentives for its senior leadership in FY25, even where performance hurdles were met or exceeded.
The numbers: At 2:49pm AEST, Fletcher Building shares had slipped 2.4% to $2.86.
Fletcher posted a NZD419 million ($376 million) loss in financial year 2025, steeper than the NZD227 million loss taken in the previous year.
The context: In a foreword to the FY25 remuneration report, people and remuneration committee chair Jacqui Coombes said that FY25 was “one of the most challenging years in Fletcher Building’s history”.
In light of this, the board has decided to “forfeit all non-sales and non-commission-based incentives across the group for FY25 — even in cases where performance hurdles were met or exceeded”. Coombes said this reflects the company’s “focus on prudent cost control”.
Looking forward, Coombes said that the FY26 short-term incentive plan “places emphasis on financial performance, with an 80% weighting, reflecting the need to drive improved financial results”. This will be reviewed in FY26.
A review of the executive long-term share scheme design will be undertaken after the company completes its strategic review.
The source: Fletcher Building FY25 remuneration report
