Tim Worner appointed CEO of Seven West Media on $2.6m salary
Seven West Media has announced the appointment of Tim Worner as the new CEO of the media company.
Already CEO of the company’s TV operation, he replaces Don Voelte who was put in place following the departure of David Leckie last year.
Worner will be on a salary of $2.6m although bonuses could take him up to nearly $4m a year if the company performs.
Voelte will instead become non executive deputy chairman of the company.
The announcement:
Seven West Media Limited today announced the appointment of Tim Worner as Chief Executive Officer.
The key terms of Mr Worner’s employment arrangements as Chief Executive Officer are as follows:
Commencement date of 1 July 2013.
Fixed annual remuneration of $2,600,000 inclusive of superannuation.
Participation in a short term incentive plan (STI) which is designed to reward the CEO for the achievement of pre-determined, individual and company Key Performance Indicators (KPIs) over the relevant 12 month performance period and which are aligned to and supportive of the company’s annual objectives for each financial year. The CEO’s KPIs are approved by the Board with financial measures (including relating to budget, costsand EBIT) and non-financial measures (such as leadership, staff development and strategic direction) being differentially weighted to reflect the focus in driving the overall business strategy.
An “on target” assessment shall result in performance-linked remuneration of 50% of the CEO’s fixed remuneration, half of which comprises a cash component and half of which comprises deferred share rights that vest annually in three equal tranches over a period of three years and that are subject to post vesting disposal restrictions.
For the CEO to qualify for an “on target” STI assessment, the company must first meet “gateway” EBIT budgets considered by the Remuneration & Nomination Committee and approved by the Board to create an STI bonus pool. Secondly, a minimum individual performance rating must be achieved by the CEO before any STI payment can be made.
Participation in a long term incentive plan (LTI) which includes annual performance-linked remuneration assessed by the Board against measures of total shareholder return and diluted earnings per share over a three year testing period to encourage sustained performance, drive long-term shareholder value creation and ensure alignment of the CEO’s remuneration outcomes to shareholder interests.
An “on target” assessment shall result in performance-linked remuneration of 50% of the CEO’s fixed remuneration delivered through performance rights over ordinary shares in the company, at no cost to the executive, subject to meeting the performance hurdles and service conditions.
Performance-linked remuneration under the incentive plans is subject to the Board’s discretion and review of the CEO’s performance annually.
The term of the agreement is three years, however at the end of the first anniversary of the commencement date each party has an option to extend the term for a further year.
If such option is exercised then on the second anniversary of the commencement date each party has an option to extend the term for an additional year.
Seven West Media may give 12 months notice to terminate.
Mr Worner may give 12 months notice to terminate other than during the first two years of the term.
Mr Worner will be subject to post-employment restraints.
Employment is terminable in the event of the employee’s serious misconduct or a nonrectified material breach.
The employment arrangements with the CEO are subject to compliance with all applicable laws, including the Corporations Act and ASX Listing Rules.
Wonder what the new V8 Supercars CEO is thinking about his exit from 7……..
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