Enero boss Melhuish sees pay rise to $939,000
Enero boss Matthew Melhuish saw a 4.25 per cent increase in his remuneration to $939,311, the company’s 2013 annual report has revealed.
A fortnight ago, the company’s financial year results revealed that operating profits had fallen from $13.9m to $3.5m, while revenues were down from $148.6m to $125.6m. As a result of a $75.9m writedown of the book value of its businesses, the company reported a loss before tax of $80.4m.
Enero agencies include BMF, which Melhuish co-founded, Naked Communications, Hotwrire, Frank PR and TLE.
Melhuish took the helm of Enero in August 2010 after the departure of Jeremy Philips who rescued the company from near collapse after its expansionist phase under chairman Tim Hughes and CEO Matt Bailey.
Enero chairman John Porter received remuneration of $175,000 the annual report, which was published this week, revealed.
In the annual report, Porter stressed that the company is debt free and “generating positive operating cash flow”. He said: “From this footing Enero is in a good position for organic growth and new revenue opportunities.”
And Melhuish said the company was going on a strategic journey from remedial action to building a reliable structure to re-imagining its offering. He wrote: “The past financial year has been focused on improving the foundations of the business, right-sizing the structures and investing in our people and our systems.
“Disappointingly our financial results do not yet reflect the work we have done behind the scenes.”
The current market capitalisation of Enero on the ASX is just under $50m, , the highest it has been during 2013.
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company going backwards yet the guys at the top keep getting pay increases and most tellingly, “bonuses”… bonuses for what exactly!
no wonder they’re in such trouble.. massive misalignment of management rewards and shareholder returns..
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I wonder how many employees at Enero companies got told, ‘sorry, we can’t afford pay rises this year. We know we’ve been pitching furiously and working you hard, but we went to the cupboard and it’s bare’.
Must be hard for them to stomach.
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A 4.25% increase is hardly worth an article. The majority of the CEO pay is fixed base which is understandable for Enero to attract someone to keep the company stable, not to mention lead the operations of a listed company.
Looking at remuneration in isolation is irrelevant unless you know what the key goals of the CEO are.
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A whopping 4.25% increase? Come on, this is hardly news… Inflation around 2.5% this is 1.75% or about $17k. Is the news really that slow today?
And Bonuses? I don’t see any mention of bonuses here.
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@Beat up, @Really?.. go look up the actual annual report that was publicly released (on ASX or Google finance), He was also paid a $100,000 bonus. For delivering another multi million dollar loss and hiving off businesses.
His 4.25% increment is in contrast to a lot of hardworking people who didnt get any payrises.
So to recap:
Management awarding themselves payrises and bonuses.
Employees missing out on both.
Meanwhile shareholders are losing equity and capital.
If you don’t see a problem here.. I can’t really help you.
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