Clarke’s remuneration had not been reviewed since his appointment on March 1, 2014, and was contractually due to be reviewed on September 1, 2016.
TWE last month reported net profit after tax of $87.6 million for the first half of FY16, a 39 per cent increase on the previous corresponding period, on a constant currency basis. Analysts roundly praised the company’s performance, under which EBITS rose 72 per cent to $146.8 million.
In light of the results and strategic initiatives put in place for future growth, Clarke’s salary was increased from $1.7 million to $2.2 million a year, TWE announced on Thursday.
TWE Chairman, Paul Rayner, commented: “Michael’s global vision and leadership has been critical to TWE achieving outstanding results for our shareholders and the Board believes it is entirely appropriate to recognise this through an increase in his fixed remuneration.”
Clarke was also granted 44,455 performance rights to acquire shares in TWE. This was a 'make-whole equity grant’ after his rights were diluted as a result of the capital raising to fund the acquisition of Diageo’s wine assets.
“TWE’s Board of Directors has determined it appropriate to grant additional performance rights to address the dilutive impact of the Entitlement Offer with the objective of putting the CEO in the same economic position as he was in prior to the Entitlement Offer,” the company said.
“The Board has also determined the same treatment for the unvested equity held by other relevant employees impacted by the dilutive effect of the Entitlement Offer.”
Clarke’s remuneration will next be reviewed in September 2017.
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