Ghost shares a nice little earner

Ghost shares a nice little earner

Spooky goings on at CSL, where phantom shares seem to be incoming chief executive Paul Perreault's best - or at least most lucrative - friend.

While you can't get blood from a stone, you can certainly wring money from blood plasma, if CSL is any guide.

And why should shareholders drink up all of that cash? The new boss of the $26.7 billion blood plasma and vaccine behemoth looks set to drink some rich drippings from the bottom line.

All he has to do is last a year - surely no problem for the mysterious American.

From details of Perreault's pay arrangements, revealed to the ASX on Friday, CBD has worked out that Perreault is set to receive up to $5.3 million a year. Or possibly more, if CSL's star continues to shine.

There is a flat $US1.7 million a year cash salary, plus up to the same amount as a bonus. Two-thirds of the bonus is to be paid as cash straight away, with the final third paid in "phantom shares".

The ghostly scrip will be paid as cash after three years, so as long as CSL shares continue their long-term upwards trend there will be a bonus bonus.

On top of that there's a long-term incentive plan under which Perreault can receive up to 120 per cent of his base pay - half of which is again in phantom shares.

Still, there's a long way to climb before Perreault's pay reaches the dizzying heights of his predecessor's. Last year Dr Brian McNamee's package was worth $7.69 million.

Is Perreault cheaper because he's just a plain old Mr, as opposed to medical doctor McNamee?

CBD joins the fray

There's hearsay evidence, there's eyewitness evidence and there's the rolled gold standard: CBD.

Thursday's column has made an unexpected appearance in the Victorian Supreme Court stoush between Myer and designer Kym Ellery, whom the department store accuses of breaching her contract in order to go over to rival David Jones.

Myer has dragged DJs into the fracas by demanding internal documents, including supply agreements, and on Friday DJs' barrister Charles E. Shaw returned the favour by telling the court his clients needed access to internal Myer communications, in particular any correspondence to and from media relations rep Jo Lynch, about the case.

He suddenly pulled out Thursday's CBD column as evidence, where Myer boss Bernie Brookes was quoted saying Myer still wanted a relationship with Ellery but "it's no good saying we'll all be high-fiving at the end of it".

Shaw said the communications were necessary to find out "whether Myer would be ready, willing and able" to resume the relationship if Ellery was forced to abandon the new deal with David Jones.

He said DJs needed to determine if what Myer was saying externally was the same as what staff were saying internally.

Wheeler dealers

It's to be war on wheels when commercial property's finest clash with corporate advisers and childcare tsars next weekend.

Executives from Colliers, Mirvac and Aviva, led by Mirvac capital partnerships boss Bevan Towning, are limbering up as they prepare to ride all the way around Tasmania as part of this year's Tour De Kids.

The event, which raises money for the Starlight Children's Foundation, will pit the joint Colliers/Mirvac/Aviva team against a Lend Lease team, led by Lend Lease Primelife CEO Paul Walsh, a team led by Fort Street Advisers principal Richard Hunt, and a Jigsaw Childcare team led by Guardian Childcare Alliance boss Tom Hardwick. Mercifully, entries to this feast of masochism have closed, but donations in support can be made through the Tour De Kids website.

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