Webjet has reneged on its decision to cancel incentives for FY20 in a bid to retain its “sought-after” top brass.
The web platform has reintroduced incentives for its managing director, executives and key staff after previously cancelling them to save money during the global pandemic.
Webjet said in a statement it will introduce a new ‘Long Term Incentive Plan’ (LTIP), and to make both long term incentive (LTI) and retention grants under it.
“Recognising the sacrifices the executive team have made to assist the company and to assist in retaining personnel who are both sought-after and will be essential to driving the business forward, the Webjet board proposes to introduce a new LTIP,” the company said.
Managing director of Webjet, John Guscic (pictured above), who recently copped a 20 per cent reduction to his salary and directors fees and forwent his FY20 bonus, will instead receive an LTI grant with options to acquire fully paid ordinary shares in Webjet which vest in three equal tranches over the next three years if he achieves certain share price targets.
Prior to his salary reduction, Guscic received a whopping pay rise when his tenure was extended in January.
The board has also agreed to make a one-off retention grant of performance rights to a small group of Webjet senior management personnel (excluding Guscic).
These rights, which will convert into fully paid ordinary shares, will vest in three equal tranches over the next three years subject only to the relevant senior management personnel remaining employed by the company.
Webjet is also looking to replace its cancelled LTI equity grants with a new, broader-based grant of options that mirror the companies practice over the past four years except they will involve a broader group of key personnel, depending on share price targets.
“The board considers the new LTIP and proposed LTI grants to be critical to ensuring Webjet retains key talent within the Company as the global travel industry recovers,” the company said.
“The grants are an important part of incentivising key personnel to generate long term shareholder value – they align management more closely with shareholders; they are noncash and, equally importantly, provide a reward for the effort put in by the management team in negotiating the Company through one of the toughest environments ever faced by the travel sector.”
If approved by shareholders, the new LTIP will come into play on 22 October.