Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Orion CEO Remuneration

23 July 2014

Orion CEO Remuneration

Christchurch is a challenging and complex place to live and work as the city is rebuilt post-earthquake. From a business and community perspective, it is not 'business as usual' for anyone.

In August 2011, the Board of Orion secured agreement from Rob Jamieson, a highly regarded executive and very experienced electrical engineer, to take the role of Chief Executive Officer of Orion to lead the organisation through the first phase of recovery and rebuild.

This appointment followed the departure of the previous CEO, Roger Sutton, to head the Canterbury Earthquake Recovery Authority. The appointment was at a time when Orion was still in an emergency recovery mode following the extensive damage caused to the local electricity network as a result of the February and June 2011 earthquakes.

When appointed at that time, the remuneration package was agreed to include a one-off at-risk deferred component. The at-risk component was equivalent to around 15% of base salary over a three year period and was only payable if the CEO achieved satisfactory performance in the three years to August 2014.

Mr Jamieson has more than met those performance requirements by professionally and skilfully managing Orion's recovery from the earthquakes, and its significant rebuild investment, in very trying conditions over the last three years.

Given the performance of Mr Jamieson, the Orion board unanimously agreed to pay the deferred at-risk component agreed at the time of Mr Jamieson's appointment. Half of the payment was made in the 2014 financial year with the remaining 50% made in the current 2015 financial year. The 30% increase in annual salary reported in some media is incorrect as the 2014 figure in the annual report includes a payment deferred for performance over the last three years. As the Board spokesperson, I apologise if earlier communications caused this confusion.

Including the annualised cost of the at-risk deferred component, Mr Jamieson's remuneration is below the market median for his position equivalent during the last three years.

Orion is a lifelines company vital to the Canterbury economy. It is managing a large earthquake rebuild, needing to invest over $300m over the next five years in physical assets, and the number of new residential and business connections continues to increase as the rebuild gathers pace.

The number of contractors working near our network also continues to rise, and is now around ten times pre-quake levels.

It is absolutely critical that Orion has strong leadership and management and that the company has a CEO that is a high performer with technical expertise that can also offer stability to the company and stakeholders.

About Orion
Orion owns and operates the electricity distribution network that provides power to central Canterbury. As one of the largest electricity distribution networks in New Zealand, we cover remote rural areas, regional towns and the city of Christchurch. Our goal is the provision of a safe, resilient, reliable and cost effective electricity distribution network.

Our network extends over 8,000 square kilometres from the Waimakariri River in the north to the Rakaia River in the south and from the Canterbury coast to Arthur's Pass. We transport electricity to more than 190,000 homes and businesses.

Orion is a community owned entity with two shareholders - the Christchurch City Council owns 89.3% through its subsidiary Christchurch City Holdings Ltd, and the Selwyn District Council owns 10.7%. We aim to create value for our shareholders and contribute to the economic success of our region.

Orion bills electricity retailers for the network delivery service and electricity retailers then on-charge homes and businesses.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news