Contact boss' base salary to be frozen

David Baldwin. Photo / Greg Bowker

Contact Energy says the base salary of its managing director, David Baldwin, which has jumped from $725,000 to $838,856 will be frozen at that level.

The annual report shows deputy chairman Phil Pryke has had $214,000 axed from his remuneration and he will be paid $150,000.

Baldwin's overall remuneration is down 6 per cent to $1.08 million because of the slashing of his at-risk variable pay.

In the year to June the company's profit tumbled 50.4 per cent to $117 million and it lost 41,000 customers after fallout from a disastrous bid to push up the pool of directors' fees.

A spokeswoman said the increased base salary related to the much better 2007-8 year but was not paid until this financial year. That base salary would be held as part of a freeze on fixed remuneration among senior executives.

"This applies across the company, however the more senior people in the company are most affected, with at least half of their potential at-risk remuneration not being paid," the spokeswoman said.

Baldwin's variable remuneration fell from $431,000 to $246,000 although his total package including unvested shares and options stands at $1.63 million - up from $1.51 million.

Earlier this month Baldwin said executive rewards should relate to financial performance, not other factors.

"If we're not delivering that as an executive team we shouldn't get paid for being loved and liked and being relatively good. Where our shareholders go so do we - if they don't have a great year we shouldn't either on the whole."

Remuneration for the board grew from $769,965 to $852,651, due mainly to chairman Grant King being paid fees and the addition of one other paid director, Sue Sheldon.