Mighty River Power boss gets $500k payout
Mighty River Power chief executive Doug Heffernan will get a special one-off payment of $500,000 at the end of 2013 - just for staying with the state owned enterprise, part of which the Government hopes to sell next year.
In its annual report published yesterday, the company said Heffernan had committed to remaining with Mighty River until the end of 2013, with the board holding an option to extend his contract for another year.
At the end of the original contract term - to the end of 2013 - Heffernan would get the one-off retention payment of $500,000. No further retention or termination payments would be made if the board extended the contract.
The report shows Heffernan's total remuneration package for the 2012 financial year was $1,492,601, down from $1,796,743 the year before.
The latest year's payment included an unchanged base salary of $934,125, and a short term incentive payment of $168,142. Under his long term incentive plan, Heffernan received a payment of $290,000 last October, having received $643,333 in the 2011 financial year. There were also some benefits.
Company chair Joan Withers said the board was delighted Heffernan had committed to remaining at Mighty River through 2013, along with the option to extend his contract.
"This arrangement gives the company continuity of leadership and allows certainty around managing succession planning as the company progresses through a potential initial public offering and the next phase under mixed ownership," she said.
The Government had planned to float 49 per cent of Mighty River Power in the third quarter of this year but the sale was put on hold after a Waitangi Tribunal report recommended a delay.
The tribunal suggested that consideration be given to issuing special shares in the company to Maori with a specific interest in the water used by power companies.
Last week the Government rejected the so-called "shares plus" idea, and yesterday the Maori Council launched legal action to stop the part-sale of state energy companies.
The Government now plans to partially sell Mighty River Power in the second quarter of 2013.