Pacific Brand CEO Sue Morphet to step down

John Pollaers will receive a combination of fixed annual remuneration (FAR), short term incentive and long term incentive. These are comparable with the existing CEO's remuneration package.

His fixed annual remuneration for the first year is $1.4 million (inclusive of superannuation and any car allowance) and is reviewable each year effective 1 July.

He is eligible to participate in the Company's short term incentive plan (subject to STI conditions) up to a maximum of 50% of FAR for FY 2013 and up to 100% of FAR for subsequent financial years (or such other amount as is determined by the Board in accordance with the Company's remuneration policy).

He is also eligible for an award under the Company's long term incentive plan (subject to LTI conditions) up to a maximum of 85% of FAR.  Any FY 2013 LTI awards vest immediately if his employment is terminated by the Company without cause in the first 12 months of his employment.

Mr Pollaers will receive an initial grant of performance rights to the value of $450,000 with effect from the commencement of his employment.  These rights will vest 12 months after the commencement of his employment subject to the achievement of KPIs to be agreed.  They will vest immediately if his employment is terminated by the Company without cause in the first 12 months of his employment.

If the Company terminates his employment without cause, he is entitled to 6 months notice (or payment in lieu of notice) plus 6 months termination pay (based on FAR).  If the Company terminates his employment due to Fundamental Change (as defined) he is entitled to 6 months' payment in lieu of notice plus 6 months termination pay (based on FAR).  

Fundamental Change occurs if the Company ceases to be ASX listed, he ceases to be the most senior executive in the group or his duties or reporting structure are varied in a manner which materially diminishes his status or responsibilities. In the latter case (termination due to Fundamental Change) all unvested LTI awards and performance rights will immediately vest to the extent permitted by law.

Shareholder approval required under the ASX listing rules and the Corporations Act to implement any aspect of the above will be sought at the Company's 2012 AGM.

Sue Morphet's termination entitlements

Sue Morphett will receive termination entitlements consistent with her previously disclosed contractual terms under her employment agreement.

Pacific Brands