F&P boss on top pay despite big loss

Stuart Broadhurst. Photo / Supplied

New Fisher & Paykel Appliance boss Stuart Broadhurst could earn the highest amount ever paid to a chief executive at the company despite predictions of a loss of up to $65 million this year.

Broadhurst, who has been acting chief executive since September when long-standing CEO John Bongard stepped down to focus on his battle with prostate cancer, was yesterday officially confirmed in the top job.

And he will receive a top remuneration package to match it.

Broadhurst's deal includes a $700,000 base salary, a short-term incentive bonus of up to $350,000 and a long-term incentive of up to $175,000 provided he meets certain performance criteria.

His total package could be as much as $1.225 million - close to $85,000 more than former chief John Bongard earned. The most Bongard got paid was $1.141 million but he took a 7.5 per cent pay cut of $85,000 in February because of the tough economic conditions faced by the company.

Other executives also took a 5 per cent cut and staff were put on a four-day working week to help cut costs.

Broadhurst's widely expected appointment comes just weeks after the whiteware maker revealed a half-year net loss of $82.4 million after making a $55 million write-down in its North American business.

For the full year to March 31 Fisher & Paykel forecast a normalised net profit of between $16 million and $23 million but once abnormals are taken into account the loss could be between $58 million and $65 million.

In a staff announcement made yesterday, chairman Ralph Waters said Broadhurst's appointment was a well-deserved promotion.

"He brings 21 years of solid contribution, knowledge and industry experience, earned from numerous national and international held senior positions within the group."

Waters said Broadhurst was selected unanimously.

Broadhurst has been with Fisher & Paykel since 1988 when he joined the company as a graduate accountant in the refrigeration division.

Fisher & Paykel's share price closed up 1c on 58c yesterday.

STUART BROADHURST
Age: 43.
Qualifications: Bachelor of Commerce.
Work experience: 21 years with Fisher & Paykel.
* Began work in 1988 in the refrigeration division as a graduate accountant.
* Worked for the company in Australia, the US and the UK.
* Appointed chief operating officer in July.
* Interests: Family, fishing, boating, rugby and tennis.