by Jenny Ruth
Chairman Colin Beyer says the options will simply lapse. The company certainly won’t be compensating Boonzaier for their loss, he says. "I’m against those sorts of arrangements."
The last annual report shows at September 30 last year, Boonzaier held 198,110 Tower shares and 674,229 options.
When Tower listed in September 1999, Boonzaier was given an eight-year interest-free loan of up to $650,000 to buy shares in the demutualising company. That was on top of his $650,000 base salary and target bonus of 30% of base salary. He was already entitled to 3,868 fully paid shares and 4,940 partly paid shares as a result of the policies he held.
His first round of options, 575,221, were determined at five times his base salary divided by the $5.65 a share issue price and he was given a top up a year later. Beyer says Boonzaier hasn’t received any further options since the 2001 annual report was published.
The options couldn’t be exercised for at least three years after the float and then only if the compound increase in shareholder value was at least 5% a year and was greater than the unweighted average compound increase of all companies in the Australian Stock Exchange's insurance accumulation index
Tower shares have traded well below the issue price for practically all its almost three years as a listed company. In July, they hit a record $4 low.
Beyer won’t be drawn on what retirement benefits Boonzaier may receive – he has led the company for 12 years.
"Hopefully, he’s saved some of his pay. He’s been getting plenty," Beyer says.
The 2001 annual report shows the highest paid employeee, presumably Boonzaier, was New Zealand-based and received between $1 million and $1,009,999.
"We will report what we’ve paid him when we report to our shareholders," Beyer says.
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