There will be fewer love hearts and boxes of chocolates this Valentine's Day for the short-lived chief executive of Perpetual Limited, Chris Ryan.
It looks like he will have to settle for just a $1.23 million cash termination payment, some short-term bonuses and a swag of options.
Perpetual yesterday announced its shock break-up with Ryan - just eight days short of his first anniversary with the funds management company - citing irreconcilable differences.
Ryan's bust-up payment compares to the $871,000 termination payment paid last year to Perpetual's chief executive David Deverall, whose relationship with the company encountered seven-year itch issues.
Given Perpetual's chairman, Peter Scott, said yesterday he "agreed to disagree" with Ryan on how the company was run, it remains to be seen whether Ryan will fulfil all the targets in his short-term incentive plan that includes "behaviour objectives". He will also retain his 78,616 unvested options in the company that are still subject to various hurdles.
When Ryan joined the company on Valentine's Day last year, love was very much in the air. Aside from being paid a cash sign-on bonus of $500,000, he was given $136,400 to cover his costs of relocating from his old job in Hong Kong.
Perpetual's new chief executive, Geoff Lloyd, will be paid a $1.1 million annual fixed salary and will be eligible for short-term and long-term incentives. Despite being paid less than Ryan, Lloyd still must have a little left over from the $1.1 million sign-on payment he was paid when he joined Perpetual as its head of private wealth in August 2010.
There are some encouraging signs this relationship could go the distance. Lloyd seems keen to inject some spice into it.
In yesterday's announcement, he noted how he wanted to "reinvigorate" things and how he agreed with the board that the company needed to "work harder".
EQUALITY FOR ALL
Rarely does one mention civil rights and Goldman Sachs in the same sentence. But the chief executive of the company, likened by Rolling Stone magazine as a "great vampire squid wrapped around the face of humanity", Lloyd Blankfein, has lent his voice to a campaign pushing for marriage equality.
"America's corporations learnt long ago that equality is just good business and is the right thing to do," Blankfein said in a television advertisement for Human Rights Campaign.
Human Rights Campaign is the largest civil rights group in the US that represents the rights of lesbian, gay, bisexual and transgender people.
RAISING HOPE
It does not take much investor interest to keep one property outfit happy. The chief executive of Brisbane property company Cromwell, Paul Weightman, could barely contain his excitement yesterday following the group's latest raising.
Weightman said Cromwell was "extremely pleased with the support we've received, both onshore and offshore".
He was discussing the $36 million that was raised last week to cover the $78 million shortfall in Cromwell's one-for-six entitlement offer that was undertaken last year.
Cromwell had originally aimed to raise $114.4 million through the entitlement offer. Following last week's shortfall facility raising, it has now cobbled together $75 million through the offer. Mind you, unlike most other big listed property outfits (such as Goodman Group, Mirvac and GPT), Cromwell has managed to raise equity without massively diluting its share register.
HIGHS AND LOWY
Was the retail landlord Westfield preparing to do a deal or visiting the NSW Premier, Barry O'Farrell ?
That was the question posed by one CBD informant last week when he spotted the retail giant's co-head Steven Lowy striding through the entry of the Governor Phillip Tower complex.
Located in the skyscraper, to the left of the revolving door, are investment bankers Goldman Sachs and Bank of America/Merrill Lynch, which would both love a sliver of any Westfield deal. Merrill was one of the 10 lead managers on last year's Westfield Retail Trust public offer.
Then again, situated in the adjoining Governor Macquarie Tower is the office of the NSW Premier, who would be happy to chat to Lowy given the huge revenue the malls generate for NSW through redevelopments. The more boring explanation was he was merely walking through the building to get to the other side.
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Frequently Asked Questions about this Article…
What happened with Perpetual’s CEO Chris Ryan and why did he leave?
Perpetual announced a surprise split with CEO Chris Ryan just eight days short of his first anniversary, citing “irreconcilable differences.” The company said its chairman Peter Scott “agreed to disagree” with Ryan on how the business should be run.
How much did Chris Ryan receive when he left Perpetual?
According to the article, Chris Ryan will receive a $1.23 million cash termination payment, may get some short‑term bonuses if targets are met, and retains 78,616 unvested options that remain subject to various hurdles. He had also been paid a $500,000 sign‑on bonus and $136,400 to help cover relocation costs when he joined.
What are the 78,616 unvested options Chris Ryan kept, and what does that mean for investors?
The article notes Ryan retains 78,616 unvested options that are still subject to hurdles. In plain terms, unvested options are rewards tied to meeting future performance or time conditions, so investors won’t see those converted into shares unless the specified hurdles are met.
Who is Perpetual’s new CEO and what is his pay package?
Perpetual’s new chief executive is Geoff Lloyd. The article says Lloyd will be paid a $1.1 million annual fixed salary and will be eligible for both short‑term and long‑term incentives. It also notes he previously received a $1.1 million sign‑on payment when he joined Perpetual as head of private wealth in August 2010.
Did Geoff Lloyd say anything about the company’s direction that investors should know?
Yes — in the announcement Lloyd said he wanted to “reinvigorate” the company and agreed with the board that Perpetual needed to “work harder.” That signals management is aiming to change the company’s momentum, which is something investors routinely watch.
What did the article report about Cromwell’s recent capital raising?
The article says Cromwell raised $36 million last week to cover a $78 million shortfall from its one‑for‑six entitlement offer. Cromwell originally aimed to raise $114.4 million through the offer and, after the shortfall facility raising, has now put together about $75 million through the offer.
How did Cromwell’s equity raising compare with other listed property groups?
The article points out that unlike some big listed property groups such as Goodman Group, Mirvac and GPT, Cromwell has managed to raise equity without massively diluting its share register — something many property investors care about.
Was there any mention of Westfield, investment banks or corporate activism in the article?
Yes. The piece notes a sighting of Westfield co‑head Steven Lowy near NSW government offices and mentions investment banks Goldman Sachs and Bank of America/Merrill Lynch are located in the same tower and would be interested in any Westfield deal. Separately, the article highlights Goldman Sachs CEO Lloyd Blankfein lending his voice to a Human Rights Campaign advertisement supporting marriage equality.
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