Financial Standard Comments - Centrepoint locks-in CEO with incentive bonus Centrepoint Alliance, the parent company of Professional Investment Services (PIS) dealer group, has approved the issue of up to $1.5 million of fully paid ordinary shares to Centrepoint and PIS managing director John De Zwart as a long term incentive. https://www.financialstandard.com.au/feed/latest?story=33756915 Tue, 06 Aug 2013 21:10:00 +1000 Tue, 06 Aug 2013 21:10:00 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Richard Clarke (Richard Clarke Chartered Accountant)

Have I got this right? Underlying profit is yet to be announced but is expected to be around $4million. Incentives increase in 6% bands, starting at a 33% increase over the $4 million i.e. $1.2 million increase. The CEO gets $500,000 of that increase in incentives. Wow!!!!! If the company (not the CEO) achieves a $1.44 million increase in underlying profit, the CEO gets $1 million of it, and if the company achieves $1.68 million increase in underlying profit, the CEO gets $1.5 million of it.

If that is right (and I hope I am wrong somewhere here) then that does seem one-sided in the extreme. There are rights that come with ownership that seem to be being ignored.

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]]> Richard Clarke (Richard Clarke Chartered Accountant) Tue, 06 Aug 2013 21:10:00 +1000