Payday for Contact senior managers triggered by Origin exit
By Pattrick Smellie
Aug. 4 (BusinessDesk) - Contact Energy's senior management team is set to benefit to the tune of almost $3.8 million
from today's announcement of the exit by its 53 percent shareholder Origin Energy.
The ownership change triggers the rights of existing senior managers to receive Contact shares at no cost with a total
value of almost $3.8 million, based on the $4.65 per share price used for the Origin disposal, and according to the
company's most recent NZX filings.
A total of 775,959 performance share rights (PSRs) and 35,982 deferred share rights (DSRs) are owed to the existing
senior management team, for a total value of $3.78 million based on the $4.65 strike price.
In addition, according to filings last December, former chief executive and departing board member David Baldwin, holds
106,104 PSRs, with a value of $493,384.
A total of 2.9 million PSRs and DSRs are triggered by the Origin sale, affecting a raft of former senior officers of the
company as well as the existing senior management team. At a price of $4.65, those shares are worth almost $13.5 million
in total, or more than $14.5 million if the last traded price for Contact shares of $5.02 is used for the calculation.
Contact shares are currently suspended while Origin lays off its shareholding to a range of New Zealand and offshore
institutional and retail investors in a move designed to shore up the Australian company's balance sheet and protect its
investment grade credit rating as it completes a A$25 billion liquefied natural gas plant in Queensland.
The largest beneficiary of the PSR redemptions appears to be Contact's chief executive, Dennis Barnes, whose entitlement
stood at 334,479 PSRs in filings to the NZX on Dec. 15, giving shares issued a value of $1.55 million at $4.65 per
share. The next largest entitlement is to chief financial Graham Cockcroft, with 155,154 PSRs, according to filings with
the NZX on March 6, with a nominal value at $4.65 per share of $721,466.
The head of people and culture, Annika Streefland, held 93,527 PSRs and 11,783 DSRs according to filings on June 30,
with a combined value at $4.65 per share of $489,692, while the head of sales, customer experience, trading and
geothermal resources, James Kilty, held 86,776 PSRs at Dec. 15, nominally valued at $403,508.
Also triggered by the change of ownership are rights to exercise 13.5 million share options, which have also been
granted to a range of current and former senior managers at Contact. However, with trigger prices of between $5.22 and
$5.94, above recent trading prices for Contact shares, there is no incentive to convert them at present, although all
options remain able to be exercised until the option rights lapse.
(BusinessDesk)