Elders will pay its high profile managing director, Mark Allison, a sum equal to the value of 90,000 shares next month, despite shareholders refusing to endorse a similar deal late last year.
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Based on the farm services company's current share price the bonus could be worth about $750,000.
The payout is set to be followed by another similar bonus in June next year.
The deal replaces a remuneration arrangement agreed to by the board of directors after Mr Allison cancelled his retirement plans a year ago, committing to staying at Elders' helm at least until mid-2025.
However, shareholders at December's annual general meeting were not impressed by the offer of two tranches of 90,000 shares as "service rights" and refused to approve it, also rejecting two retention bonuses totalling $1 million proposed to be paid in June this year and next, and the AGM's remuneration report.
Instead, the board has now opted to pay out its service right remuneration offer in cash, arguing it was obliged, as part of Mr Allison's re-employment arrangements, to provide compensation of equivalent value to the service rights.
Commenting on the board's payout decision, Mr Allison said he was in no way part of the discussion and did not know what other compensation options may have been considered.
"Regardless, I've always maintained I did not decide to stay at Elders for the money," he said.
"I wasn't part of the (other) directors' decision, but I would assume this is a fairly normal procedure ... the board had a legal obligation to do something."
He was unsure, and unable to speculate, if the board's actions could provoke more disenchantment with shareholders.
Profit fall
This week's payout announcement coincided with Elders confirming its statutory net profit for the first half of the 2023-24 trading year fell 76 per cent to $11.6m.
Last month Elders warned it had weathered a tough first quarter of droughty seasonal conditions, low livestock prices and poor crop input sales, forcing it to rethink its 2023-24 earnings expectations by as much as 30pc.
Despite improved market conditions and revenue prospects for the second half, the big agribusiness this week reaffirmed its recently revised earnings before interest and tax guidance for the full year was still $120m to $140m - down from December forecasts of as much as $170m.
To settle their obligation concerns about Mr Allison's contract, chairman, Ian Wilton, and his three other non-executive directors, have agreed to convert Mr Allison's service rights to a sum equivalent to the weighted average of Elders' share price for the final trading week in May, multiplied by 90,000.
The arrangement assumes the managing director stays in his job beyond June 1.
A further payment equal to the weighted average of 90,000 Elders shares traded between May 26 and 30 next year would be paid on June 1, 2025.
"In all other respects, the material terms of Mr Allison's employment remain as previously advised to the ASX," Mr Wilton said.
Share price lifted
He noted since Mr Allison's new contract was announced on June 5 last year Elders' share price had improved 25pc from $6.55 to $8.21 at the close of trading last week - about $600m-plus in increased market capitalisation value.
Despite the subdued profit result, Elders' share price lifted up to $8.42 at the start of trading this week, although it remained well down on its $9.85 high prior to the revised full year earnings forecast in April.
Mr Allison, who has been managing director for 10 years and prior to that was temporarily executive chairman of Elders, is also one of the company's bigger individual shareholders.
He owns more than 1.2m shares and has almost 500,000 unvested performance rights due to him, subject to vesting conditions, in coming years.
His decision not to retire late last year was rewarded with a $400,000 pay rise to $1.5m a year, plus ongoing incentives.