Origin extends MD King's contract

Energy group and managing director Grant King agree to an ongoing contract ahead of its annual general meeting in Sydney today.

Origin Energy (ORG) has extended the contract of its managing director Grant King.

In a statement to the Australian Securities Exchange, Origin said it had reached an agreement with Mr King to extend his service agreement, set to expire on June 30, 2014, and move it to an ongoing contract.

The contract can be terminated by either party on twelve months notice, or a shorter period if mutually agreed to by both parties.

Under the contract, Origin said Mr King will be paid a fixed remuneration of $2.5 million, which would be reviewable by the board annually.

The announcement will be a welcome sign of stability, after the retirement of chairman Kevin McCann earlier this month.

Mr McCann will step down at the company's annual general meeting in Sydney today, with the board electing Gordon Cairns as his replacement, subject to reappointment as a director by shareholders.