NextDC shares slide as it flags staff retention issues
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The news: NextDC shares lowered in morning trade on the ASX after the data centre operator flagged staff retention and remuneration as a "matter of concern".
The numbers: Shares were down 1.7% to $16.09 by 11:25am AEDT, having risen nearly 20% since the turn of the year.
The context: Douglas Flynn told shareholders at today's annual general meeting, that "three significant new players" have entered the Australian market, all seeking talent for their new businesses. In addition, NextDC's staff are being approached and some of have been recruited "into Asia and elsewhere", he noted.
Flynn said that remuneration structures being offered are "very different" to those being accepted as normal within the Australian listed environment, particularly as private equity and large US listed companies enter the sector.
What they said: "The board has tried to perform a balancing act between 'normal' within the context of the ASX environment and the real market for talent in the sector," Flynn said.
"You can expect us to come back to shareholders with a bolder plan in 2025."
The sources: ASX announcement, ASX announcement
