AUSTRALIA: Pacific Brands shareholders reject bonus package
Shareholders in Australian apparel group Pacific Brands have rejected management's remuneration package.
At the company's AGM in Melbourne today (25 October) some 315m votes, or 52.8% voted against the package, while 279m, or 46.9% were in favour.
The remuneration report said that chief executive Sue Morphet and the company's other senior managers received short-term cash incentives, even though earnings targets were not met.
Chairman James MacKenzie said the board decided to "open the gate on payments" on its short-term incentive scheme after the company "narrowly missed" the 90% EBITDA target set for the year.
MacKenzie justified the decision, referring to the "extremely difficult retail environment", which it primarily attributed to Kmart delisting its products, as well as the impact of input cost increases.
"What we should have also emphasised was that the delivery of the transformation program - one year ahead of schedule and despite many thinking it couldn't be done - was a critical consideration in the board's decision to open the gate for the payment of short-term incentives. The scale and scope of the transformation should not be underestimated," said MacKenzie.
The company said it expects its 2012 underlying sales and earnings to be below that of 2011, with earnings in the first half to be "materially lower" in the first half.
Morphet attributed the weakened results to a "number of negative factors" including "continuing weak retail conditions, changes to its discount store department base, [including delisting by Kmart], and substantial input cost increases".
"It will take some time to make up the lost sales as we build distribution elsewhere. Accordingly, we expect sales in the underwear group to be down this year," she said.
Help test our new apparel sourcing tool.
Wheeled shoe maker Heelys Inc has narrowed its fourth quarter loss thanks to a surge in sales as it focuses on developing new products and brands....
Private equity firms Blackstone and KKR are considering joining the bidding race to acquire Australian surfwear company Billabong, according to reports....
Department store retailer Sears has announced plans to spin-off its Hometown and Outlet businesses, and sell 11 stores, after swinging to a full-year loss of $3.1bn....
- Unlocks for the future fashion sourcing landscape
- EU eyes mandatory due diligence for apparel supply
- Geo-political uncertainty and how to survive it
- What TTIP might mean for US, EU textiles & apparel
- Where next for Corporate Human Rights Benchmark?
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Sears has "substantial doubt" of future
- World Bank commits $57bn to sub-Saharan Africa
- Target unveils "ambitious" store re-design plans
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective