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Whitehaven Coal to boost CEO's pay

AAP logoAAP 23/09/2016 Prashant Mehra

Whitehaven Coal chief executive Paul Flynn's annual pay barely changed in the 2015/16 financial year, but the miner plans to increase his potential remuneration in the current year.

Mr Flynn earned $2.43 million in 2015/16, with a fixed salary of $1.33 million plus $770,000 in short term incentives, according to Whitehaven's annual report, released on Friday.

He failed to earn any long term performance rights for the fiscal year, due to weaker shareholder returns compared to the company's peers, but did pick up $320,000 through the vesting of previous performance rights.

The east coast miner made a $20.5 million profit in 2015/16 on the back of its expanded operations, and has outlined a bullish outlook for the current year. It made a $343 million loss in 2014/15.

Whitehaven shares have more than trebled in value in 2016, but the company has ruled out dividend payouts in the near term, saying it is focusing on consolidating performance and reducing debt.

The company said on Friday it will increase Mr Flynn's potential pay in 2016/17 by increasing his possible short term incentives to 100 per cent of fixed salary, from 50 per cent now. The refining of the remuneration arrangements was in line with the company's growth, it said.

"The uplift in STI will be delivered in deferred equity - the STI award will be 50 per cent in cash and 50 per cent in deferred equity. This change will also align the CEO's at-risk remuneration component with shareholder interests," remuneration committee chairman Christine McLoughlin said.

Whitehaven's board has decided to keep the non-executive directors fees unchanged in 2016/17.

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