Tower chief rakes in $1.3m

Jim Minto

Insurer and financial services group Tower's chief executive, Jim Minto, will be paid $1.3 million a year provided he meets short-term performance targets, and stands to gain even more through share options.

Tower chairman Olaf O'Duill yesterday gave details of Minto's salary package effective from March this year. His basic salary is $750,000 plus a $100,000 "dual location allowance".

Minto's open-ended contract provides a "short-term incentive" of 60 per cent of his basic salary - an additional $450,000 - on the achievement of various targets.

O'Duill said Minto's package included a "medium-term incentive" comprising 778,500 existing share options exercisable from April 2007 and a further 721,500 options granted effective from August 9 this year and exercisable in August 2008.

The further options were granted at Tower's average share price on the NZSX for the five days to August 9 this year.

Tower can terminate Minto's employment whenever it likes - with six months' notice plus 12 months' salary.

Tower's board also said it would offer up to 4,871,500 share options to 11 of its senior executives, with an exercise price also calculated on Tower's average share price over the five days to August 9.

The options can only be exercised if Tower's share price rises 10 per cent a year less any distributions before their exercise period starts- August 2008 for most of them.

Tower also said yesterday it had sold its historic Wellington head office building for $23.45 million but would continue to lease offices there for at least another four years.

Originally known as the Government Life Building, the waterfront Tower Corporation Building has category two status with the Historic Places Trust. "

Minto said the sale price was a good one.

"Our policyholders will benefit from diversifying their investment and the sale at this time on these terms is in their best interests."

The sale, to a New Zealand buyer, will be settled in cash by the end of this month.