Kogan.com Proposes Minimum Wage for CEO in Shift to Performance Rights Based on Shareholder Returns
Kogan.com (ASX:KGN) said the fixed annual pay for CEO Ruslan Kogan is proposed to fall to the applicable minimum wage of about AU$50,000, including superannuation, from AU$847,838, subject to shareholder approval, according to a Monday filing with the Australian bourse.Kogan will not have any short-term incentives, and the principal component of his remuneration opportunity will be about 6.7 million performance rights, subject to an absolute total shareholder return of 100% over a five-year performance period using a base price of AU$3.72.Achieving the hurdle would represent about AU$383 million of additional shareholder value from the Sept. 4 closing price of AU$3.40, the company said.Meanwhile, CFO and COO David Shafer, who earlier indicated that he is looking to pursue other interests, has agreed to remain with the company until June 30, 2028, to support an orderly transition.Shafer's proposed arrangements are retention-focused and include revised fixed remuneration and incentive arrangements, together with a cash-settled retention award subject to an absolute total shareholder return hurdle of 50% over a two-year performance period. Achieving the hurdle would represent about AU$207 million of additional shareholder returns from Sept. 4.The Kogan.com board recommends that shareholders approve the new pay structures.The company's shares fell 1% in recent Monday trade.
