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The Daily Telegraph

February 27, 2009 12:01am

SHAMELESS executives at Bonds owner Pacific Brands awarded themselves pay rises of up to 170 per cent last year – at the same time as they were hatching plans to sack nearly 2000 workers.

The Daily Telegraph
 has revealed that the total remuneration for 13 directors more than doubled in 2008, from just over $7 million to $15.5 million.

The bill, which was approved last June, includes a rise in CEO Sue Morphet’s package from $685,775 to $1,860,649, including a staggering seven-fold increase in her “incentive payments” – blood money for slashing nearly 1850 jobs.

Her bonus was approved despite her overseeing a 45 per cent fall in the share price in the six months leading up to the pay deals.

The company’s annual report also details a payment of almost $6 million to former CEO Paul Moore, partly made up of a retirement pay-off, up from less than $2 million in 2007.

I don’t know why everybody’s so surprised.. Bonds hasn’t been “Australian” for some time now.. Every pair of Bonds I own has a “made in CHINA” labe…

(Read More)

Terry of Brisbane

The news will be a hammer blow to the families of the 1850 workers told that high costs meant their jobs were no longer viable.

Stock market analysts expressed “horror” at the pay rises.

“It is impossible to justify pay increases of this magnitude,” said Sven Restel of share analysts Wise Owl.

“The share price has plunged by about 90 per cent from its high and the dividends have been cut, so shareholders are being wiped out. Now nearly 2000 workers have been sacked.

“The only people who are benefiting are the board.”

Another expert has predicted that the company’s value will fall to zero in the next year as the result of a customer backlash.

Pacific Brands is no longer a leading Australian producer but a mere importer,” said David Errington of Merrill Lynch.

“The equity value of Pacific Brands could soon be close to zero.”

The news will fire up the debate about excessive executive pay and short-term incentives influencing directors’ decisions.

A spokesman for Corporate Law Minister Nick Sherry confirmed the Government is investigating.

“The Government is very concerned about executive remuneration and are keeping a watching brief,” he said.

John Bracun, 45-year-old father of two, and who works as a team leader, has been with the company 26 years.

He believes the directors should have waived bonuses to help the company survive.

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