Mining and civils contractor NRW Holdings has made a symbolic cost-cutting move, reducing the CEO’s pay by 40 per cent.
The company will save more than half a million in 2016 on chief executive Julian Pemberton’s base salary and superannuation, reduced from $1.32 million to $800,000 per annum.
Pemberton was one of the best paid executives in Western Australia, ranking number six for base salary according to the Business News CEO Salary survey.
His total remuneration of $1.49 million made him the 31st highest paid CEO in WA.
Pemberton will be entitled earn a cash based bonus of 50 per cent of his base salary based on performance for the financial year ending June 2016, based on the determination of the board.
In order to secure bonuses, including Performance Rights of 75 per cent of base salary, NRW will need to increase its share price to 200 per cent of the one-month volume weighted average price for the period ending 21 December 2015.
NRW joins a growing list of Australian mining services companies that have slashed executive paychecks, such as Macmahon Holdings and Ausdrill.
Last week Rio Tinto announced a freeze on all salaries including that of CEO Sam Walsh, and advised all management and executives to cancel as much travel as possible and use conferencing technology instead.
NRW’s share price has plunged since the AGM in November, going from $0.135 to today’s record low of $0.056.
In April 2012 NRW peaked at $4.24 per share.
Last year NRW won a legal battle with Samsung C&T over $25 million worth of contracting services at the Roy Hill project, after the Korean construction firm failed to make progress payments for the $620 million earthworks and drainage contract for the rail line between Port Hedland and Roy Hill.
Over the past year NRW has cut more than 2200 staff.