By Ian Neubauer
Coca-Cola Amatil (CCA) managing director Terry Davis received a total package of $7.81 million in 2008, a six per cent increase compared to the year before.
The figure was disclosed yesterday (Apr 23) in CCA’s annual report, which outlined the remuneration packages for Davis and other senior executives and board members of the group.
CCA managing director – Australasia, Warwick White, earned $2.75 million in the period – up three per cent from 2007, while Nigel Garrard, managing director of the company’s food and services arm, received $1.58 million – $20,000 less than he earned the year before.
CCA chairman David Gonski justified the multi-million remuneration packages, saying they contained the right mix of fixed and ‘at-risk’ or performance-based components.
“The CCA board considers this to be an appropriate balance between fixed and at-risk, with the at-risk component allocated between short-term performance criteria and ongoing, long-term sustainable earnings growth,” he said.
“The fixed and at-risk components are benchmarked each year to domestic and international companies that are comparable to CCA and take into account current market remuneration rates and the performance of the company,” he said.
Gonski added there would be no increase in director’s based fees “because of the current challenging economic conditions” and only a 2 per cent increase in board committees’ fees.
CCA delivered a record net profit after tax of $404 million in 2008 – a 10 per cent increase on 2007. It increased dividends on shares proportionately, up from 20 cents in 2007 to 22 cents in 2008.
CCA’s positive result was driven by growth in the lucrative energy drinks and premium beer categories following the release of Mother, Miller Chill and the recouping of benefits following the acquisition of Bluetongue Brewery in 2007.
CCA shares were trading at $8.74 at midday today (Apr 24) compared to $8.26 seven days ago.