RVA President and CEO of Ingenia Communities Group, Simon Owen has had his bonus package established via the stock exchange. He has been awarded the maximum short and long term performance bonus of 3,300,000 New Stapled Securities, which he has to earn by staying with Ingenia for 3 years and achieve a compound annual growth of 16%. This means Ingenia units will have to grow by 56%. He looks in the money because the price has risen by 25% in just 45 days since relisting on 1 July – with cash still to flow in from village sales in the US at Christmas.
ASX documents state his base salary of $400,000 is 30% below the market remuneration of a CEO of a similar company. He will make up this 30% ($120,000) however as a Short Term Bonus if he achieves certain benchmarks. Then if he achieves the 3 year growth goal – meaning the units will be worth at least 31 cents – his bonus in units will be worth $1,023,000.
This is on top of the 1,440,750 units he already owned. Given his track record in his previous roles with Hibernian, Aevum and ING, it looks a good bet. (And if he leaves before 3 years he gets nothing).