SMS Management reveals $200k carrot for beating rivals

By on
SMS Management reveals $200k carrot for beating rivals
Jacqueline Korhonen

SMS Management and Technology (SMSMT) has promised a $200,000 bonus if the company can outperform other publicly listed tech companies.

The ASX-listed IT service provider announced to the ASX that the "executive employee" would receive up to 58,194 shares – worth $208,334 on 11 February – according to how much SMSMT performed among a peer group of 15 named companies.

The 15 firms are Dimension data-owned Oakton, UXC Limited, ASG Group, Data #3, DWS, Melbourne IT, Technology One, IRESS, Service Stream, WorleyParsons, Clarius Group, Skilled Group, Computershare, Programmed Maintenance Services and Carsales.com.

CRN contacted SMSMT but a spokesperson declined to disclose the identity of the executive involved.

In December, SMSMT appointed new chief executive Jacqueline Korhonen out of Infosys Australia. She started in the position on 2 February.

For the purposes of the incentive scheme, the performance of the 16 companies will be tracked over a three-year period from 1 July 2014 to 30 June 2017. Shareholder returns and earnings per share will have equal weight in determining how SMSMT ranks within the group.

For each of the shareholder returns and earnings per share categories, if SMSMT ranks in the bottom half then no bonus will be granted. If it comes in the middle of the pack, half of the 58,194 securities will be converted to shares.

The number of shares given will increase as SMSMT moves up the rankings, with the executive receiving the maximum $200,000 if the company achieves a top four spot.

SMSMT chairman Derek Young said before Christmas that the 2015 first half EBITDA will "likely" be up 40 to 50 percent year-on-year. The provider saw revenue increase 13 percent but take a 40 percent hit in net profit for the 2013-14 financial year.

In its last fiscal year, SMSMT saw earning and profits decline, with previous CEO Tom Stianos blaming project deferrals and reduced IT spending in many sectors. "Weak market conditions, particularly in Victoria and the ACT, have made for another challenging year."

Stianos stepped down at the end of the calendar year after 26 years at the company.


Read more: http://www.crn.com.au/News/391215,sms-revenues-up-but-profits-plunge-40.aspx#ixzz3RTECdc4E

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © CRN Australia. All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Poll

What does your business want for Christmas?
Skilled people who'll take Elves' wages
A stocking full of good leads
Please, Santa, drop some cash down the chimney!
All status indicators green like misteltoe, none red like Rudolph's nose
A peaceful, relaxing time for the team and our clients, and all their families
View poll archive

Log In

Username / Email:
Password:
  |  Forgot your password?