For Some, The Good Times Never Stop

The Age

Tuesday November 4, 2008

ARI SHARP

THREE senior executive directors at Village Roadshow are putting their hands out for a 17% pay increase that includes cash bonuses of almost $1million each despite a falling share price and mixed financial results.

Executive chairman John Kirby, his brother, executive deputy chairman Robert Kirby, and managing director Graham Burke will between them pocket $9.2million for the 2008 financial year, up from the $7.9million they received a year earlier.

But during the year, shares in Village Roadshow, whose business includes theme parks, film distribution and radio stations, fell 32%, while the fall since September last year has blown out to 59%.

Shares in the company closed steady at $1.38 yesterday.

The company's annual result shows that after-tax profit from continuing operations last year fell 8%. The company's total profit, however, was boosted by a $185 million gain through the splitting off of its film production operation.

Of the more than $3 million paid to each of the three senior executives, $916,000 was paid as a short-term incentive cash bonus. These bonuses were triggered by a measure of cash-flow return on investment and may be further boosted depending on how earnings per share compare with the top 300 listed companies.

In its annual report, sent to shareholders last week, the company justifies the pay packets by saying that "to prosper, the company must attract, motivate and retain highly skilled executives and directors".

The vote on the remuneration report will follow the rejection of executive pay by shareholders in Biota, Boral and Valad Property Group and a significant minority of opposition among the owners of Toll Holdings and Suncorp-Metway. While shareholders will get to vote on the package at the annual general meeting this month, the decision of the meeting will not be binding on the board.

The Village Roadshow annual meeting will be on November 27 at the company's Warner Bros Movie World theme park on the Gold Coast.

Corporate governance advisers Institutional Shareholder Services next week will offer its recommendations on the resolutions to be moved at the meeting.

A spokesperson for Village Roadshow would not comment.

© 2008 The Age

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