Magellan Financial Group chief executive, Hamish Douglass has $2.5 million reasons plus bonuses to keep driving returns for his company’s clients.
Magellan announced to the Australian Securities Exchange (ASX) that a replacement executive employment agreement had been agreed with Douglass involving fixed remuneration of $2.5 million a year inclusive of superannuation, up to 200 per cent of which is based on the performance of the Group’s Global Equity strategy over a three-year period.
The ASX announcement said the Douglass’ fixed remuneration had been revised to a fixed dollar amount of $2.5 million a year from the previous amount which was calculated as a per centage of $1.5 per cent of the average three-year pre-tax profits of the funds management business.
It said his variable compensation had been revised form up to 100 per cent to up to 200 per cent of the fixed remuneration and there was also a cap on the maximum total annual remuneration of $7.5 million for the next three years, compared to no cap previously.
The announcement said the board considered the revised remuneration arrangement was fair and in the interests of both clients in the global equity strategy and shareholders of the company.
