Adamson forfeits interest in $8 mln of shares after being dumped as CEO of Fletcher
By Jonathan Underhill
July 21 (BusinessDesk) - Mark Adamson has forfeited $8 million in Fletcher Building shares after being dumped as chief executive at New Zealand's largest construction and building materials company and losing his entitlement to its incentive scheme.
Adamson had a beneficial interest in 1.06 million shares before losing his entitlement, an NZX disclosure notice shows. He also forfeited an interest in 1 million options to buy shares. In announcing Adamson's exit yesterday, chairman Ralph Norris said he would receive "his contractual entitlements" on departure but "all of his share options will lapse and he will forfeit all shares in the company’s long-term incentive scheme. No short-term incentive will be paid in respect of FY17."
Fletcher shares fell 6.2 percent to $7.59 yesterday following the company's announcements, which included a profit downgrade and an impairment of $220 million against its Iplex Australia and Tradelink business units.
Operating earnings in the year ended June 30 were about $525 million, down from $682 million in 2016 and below the $610 million-to-$650 million range the company gave in March, when it slashed earlier guidance by about 15 percent because of problems with two major construction projects.
The company named Francisco Irazusta as interim CEO starting on Monday.