PGG’s previous CEO paid $3.8 million last year

IT is deja vu for the PGG Wrightson leadership team.

The rural service company’s annual accounts for the year to June 2019 disclose that CEO Ian Glasson, who left at the end of May, was paid $3.8 million last year.

This includes $1.5 million as base salary, $1.13 million as a termination payment, $1 million as part of a ‘‘longterm incentive’’ and $200,000 as an annual shortterm incentive.

The payment came on the back of the company’s 29% fall in earnings before interest and tax to $24.4 million, as a result of subdued farmer confidence, the impact of Mycoplasma bovis and constrained farm spending.

Mr Glasson, formerly with Gold CoinZuellig Agriculture, was appointed in November 2017, following the resignation of Mark Dewdney.

The former head of LIC, for his part, was paid $2.2 million when he left, including a $1.4 million payment for completion of his contract.

Mr Dewdney took over the helm of the rural service company from managing director George Gould, who resigned suddenly in 2013.

Mr Gould, whose salary — for two months — was disclosed as about $1.2 million, stepped into the role in 2010 when former managing director Tim Miles made a surprise exit after a period of underperformance.

Mr Miles, the former head of Vodafone UK, was paid

$4.3 million in the year to June 2010, including an ex gratia payment of $3 million.

Newly appointed CEO Stephen Guerin said the company had now commenced a review of the corporate service model for the business, following the divestment of the seed and grain business in May 2019.

He said the review was aimed at reducing costs and the company expected early savings of about $2.5 million for the current financial year.

PGW closed down 2c yesterday at $2.33, well off 2008’s peak of $8.76, on an adjusted volumeweighted average.