Sky TV chief's $8.28m payday

Sky Television chief executive John Fellet just had an $8.28 million payday.

Documents filed at the Companies Office in connection with the merger of Sky and the cashed-up shell of publishing company Independent Newspapers show the payment was for Fellet's Sky share options.

Fellet, 54, said yesterday the options crystallised as part of the merger and he was paid on July 1.

He received them as an incentive to join Sky as chief operating officer in 1991 - the company matched the package he had with his previous employer, Tele-Communications - and, later, as performance incentives.

Sky had regularly disclosed the details of the scheme.

"It's nothing new - other than the fact that it's payday."

Fellet, who is already independently wealthy, said he would invest the money.

A good bet: some will end up in United States sharemarkets, where he is an enthusiastic and long-time investor.

Fellet said he was not thinking about retirement, when the television game remained so much fun.

"It's like a giant chess match."

Shareholders Association chairman Bruce Sheppard said he could not think of a larger single payout to a New Zealand company executive.

He was surprised that Fellet was not paid out with shares or options in the new company - initially called "Mergeco" and now trading as Sky - rather than cash.

Sheppard said he thought that would have been more appropriate for a deal that was a company reconstruction rather than a takeover.