Platinum makes executive pay changes as part of 'turnaround' plan
Make us a preferred source
Make us a preferred source on Google
The news: Platinum Asset Management has scrapped its long-term incentive plan for its partners, including amending the contract of its new CEO and managing director Jeff Peters, as part of a "comprehensive review" of its remuneration framework.
The numbers: Platinum said that Peters is currently eligible to receive an initial grant of performance rights with a face value of $1.5 million, subject to shareholder approval at the 2024 annual general meeting.
However, the company has agreed to amend Peters' contract, effective immediately, so that he receives the same sum under a deferred remuneration plan, subject to a four-year continuous service vesting condition.
Under his contract, Peters is also entitled to receive ongoing annual grants of performance rights, with a maximum potential face value of $1.5 million.
Platinum shares added 0.48% to $1.04 in early trading on the ASX, having shedded 35% over the last 12 months.
The context: Platinum said the overhaul of its remuneration framework is part of the company's "turnaround strategy", announced earlier this year.
After finding its long-term incentive plan is "no longer fit for purpose", Platinum's board is now working on the design of a new plan, with the intention that any ongoing grants for Peters will be replaced with grants under the new framework.
Earlier this year, Platinum unveiled a new strategy with the aim of reducing costs, reviewing existing product offerings and reorganising its investment platform. The fund manager in the last few years has been hit by a decline in earnings and large outflows.
The company said it expects to find at least $25 million in annual savings through cost reductions, after appointing industry veteran Peters as its new CEO to replace co-founder Andrew Clifford.
The source: ASX announcement
