Fletcher boss’ pay up 17pc to $4.72m

Fletcher Building chief executive Mark Adamson received a 17 per cent pay rise this year to $4.72 million, while the building and construction company reported a 71 per cent gain in full-year profit and met its earnings guidance.

The annual report shows Adamson’s base remuneration lifted to $1,956,250 from $1,875,000. When the short-term incentive of just over $2m, executive long-term share scheme of $749,000 and medical insurance benefit of $5672 is added in, the chief executive’s total remuneration lifts to $4,720,262 — making him one of the highest paid bosses in the country.

That compares to the $4,040,125 he received in the previous financial year when he didn’t receive anything under the long-term scheme, and the $3.73m he earned in 2014.

Fletcher Building’s 2016 annual report outlines employee remuneration by salary band and shows two people over the $2m mark, one in New Zealand and one internationally based, while eight earned more than $1m annually.

The short-term incentive rewards, aimed to incentivise growth in earnings and operating cash, are paid out to senior executives when they meet financial and personal targets set at varying levels — threshold, target and maximum.

The executive long-term share scheme and executive long-term incentive scheme aim to align employee remuneration with financial outcomes for shareholders, the annual report said.

It stated Adamson was also granted 614,571 shares worth $4,234,394 during the year, which remains at risk, based on a share price of $6.89, which was the volume weighted average price for the five business days ended September 30, 2015. — BusinessDesk