Beam Communications Holdings Limited (ASX:BCC) Renegotiates MD Contract Saving $240K Annually
Cost Savings
Beam Communications Holdings Limited has renegotiated an employment contract with Managing Director Michael Capocchi, resulting in annual savings of at least $240,000 per year. This is achieved through a 10% reduction in base salary and superannuation, and the removal of bonuses, incentives, and stock options.
New Incentive Structure
The updated contract includes a 1.5% incentive payment based on the ZOLEO joint venture’s sale price, contingent on a minimum valuation of $10 million. Additionally, the notice period has been reduced from nine to six months.
Executive Comments
David Stewart, Beam’s Non-Executive Chair, stated, “The new remuneration package strikes the right balance for all stakeholders by delivering significant cost savings to the Company while ensuring we have the best possible chance of maximising the outcome of the sale process.
I like to thank all shareholders for their patience as Beam undergoes this period of transformation, and I like to assure you that your Board and management are focused on unlocking the intrinsic value in the Company and returning capital to shareholders.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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