Matthew Melhuish signs up to lead Enero for another four years
The boss of marketing group Enero Matthew Melhuish has extended his contract by another four years, the company has told the ASX.
Enero will pay him just under $900,000 a year in salary and super, plus a bonus of up to a further 70% of his salary if the organisation’s revenues and profits improve.
Melhuish was previously on a bonus scheme linked to improving Enero’s share price. The share price has declined by 35% over the last 12 months and by about 13% over the last week. The market capitalisation of Enero currently sits at just under $60m.
Melhuish, whose current contract expires at the end of this month, will also be given a new incentive scheme which will see him given rights to a further million shares in the company over the next three years based on growth in share price.
Enero’s companies include ad agency BMF, PR agencies Frank PR, Hotwire and CPR, and strategy shops Naked, Jigsaw and The Leading Edge. The Enero portfolio is what remains of Photon Group which teetered on going out of business five years ago. Melhuish’s basic salary is less than half of that claimed by the organisation’s management before Photon imploded.
Enero chairman John Porter said: “The board is pleased to extend Matthew’s term for another four years and are looking forward to his continued leadership of the group. The foundation now in place will provide many opportunities in line with our strategy for the next four years.”
Melhuish – the M in BMF, – was put in the Enero hotseat at the beginning of 2012. Last year saw Enero revenues decline slightly to $119.5m, but profits improve to $9m.
In May, respected adland veteran Russel Howcroft, joined the Enero board.
Tim Burrowes
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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how does this make sense?
The group is tanking under his reign and they renegotiate his contract away from performance to a high basic and a bonus?
I’m glad I’m not a shareholder – and I’m glad that there “strategy” is paying off. As is every other agency group in Australia.
Lunacy.
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Um, it was Matt who pretty much saved that ship. [Edited under Mumbrella moderation policy] Sure Enero has laboured, but that’s a legacy issue.
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the mind boggles
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Company makes numerios redundancies but keeps paying stupid salaries to CEO’s
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Matt saved that ship? Try and learn your history. Photon was saved by selling off the field business and getting enough cash to finally pay down and service debt.
That was Jeremy, not Matt. Since he’s been in charge that pile of cash just gets smaller, businesses keep getting smaller and staff keep leaving.
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I wouldn’t take a punt on BMF or Naked surviving. The structures don’t make sense and have some mediocre leadership, BMF just fired a whole raft of digital skills and Naked don’t understand communications in a digital world, more importantly, they don’t know who they are or who they want to be..
They could be the first two recognised names to disappear from our world, with more to follow behind that..
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Ahhh this explains why they got rid of our water coolers.
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