According to its recent announcement to the ASX, Harvey Norman will hold an ‘Extraordinary General Meeting’ on 30 April 2010 to approve the issue of 17,500,000 fully paid ordinary shares to six of the companies executive directors.

According to the announcement, the 17,500,000 shares are proposed to be divided as follows:
– David Matthew Ackery: 3,000,000
– Arthur Bayly Brew: 1,000,000
– Gerald Harvey: 3,000,000
– Chris Mentis: 3,000,000
– Kay Lesley Page: 4,500,000
– John Evyn Slack-Smith: 3,000,000

Harvey Norman’s remuneration policy is as follows:

“The performance of the company depends upon the quality of its directors and executives. To prosper, the company must attract, motivate and retain highly skilled directors and executives. The company intends to ensure that the level and composition of remuneration is sufficient and reasonable and that its relationship to corporate and individual performance is defined.”

The philosophy states that all executive rewards must be fair and responsible. It also states that the remuneration levels have been benchmarked against comparable executive rewards in comparable companies.

The total remuneration packages are a considerable improvement over the corresponding year. Gerry Harvey will increase from $1,042,807 to $2,380,000; Kay Page will increase from $1,313,119 to $3,845,000; Chris Mentis will increase from $809,592 to $2,530,000; David Ackery will increase from $1,250,482 to$2,980,000; John Slack-Smith will increase from $1,250,495 to $2,980,000; and Arthur Brew will increase from $518,936 to $960,000.

The proposed total remuneration of Harvey Norman executives will increase from $6,185,431 to $15,675,000. All remuneration comparisons are between 30 June 2009 and 30 June 2010.

The total remuneration package incorporates base salary and benefits, short term incentives, performance cash incentives and long term incentives.

 

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