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CROSS RELEASE PXUPA
18 December 2012
The Board of PaperlinX is pleased to announce the following appointments
which have been made after careful consideration of the needs of the
legacy management issues and the challenging
business environment faced by our business, particularly in Europe.
1. Appointment of Chief Executive Officer
Mr David Allen who was acting as the Interim Chief Executive Officer since
August 2012 has been appointed as
Chief Executive Officer
Mr Allen joined PaperlinX in 2004 and previously served as Managing
Director of the Robert Horne Group in the UK and subsequently as
Executive Vice President of PaperlinX with responsibility for the UK, Ireland
and Canada. M
r Allen's earlier background was in corporate and product
strategy, sales and marketing and general management in a range of
sectors including abrasives, industrial diamonds and automotive with Saint-
Gobain, Unicorn international and the Rover Group.
ommenting on Mr Allen's appointment, the Chairman, Mr Michael
Barker, said that "
The Board has complete confidence that Mr Allen is the
person who can continue this rapid restructuring and return PaperlinX to
profitability in the shortest possible time. Since
Mr Allen's appointment as
the Interim Chief Executive Officer, we have identified and are
implementing A$15 million of cost saving initiatives.
Mr Allen's remuneration
comprises a fixed component of £420,832 which
may be increased to £450,774 on 1 July 2013, subject to meeting certain
financial criteria. The short term incentive
for Mr Allen under
the PaperlinX incentive plan comprises both cash and equity component.
The Incentive is based on 50% EBIT, 25% Return on Funds Employed and
25% Special Projects. The maximum annual reward of up to a 100% (75%
equity and 25% cash) will only be paid if outstanding performance is
achieved by both PaperlinX and Mr Allen, and the percentage will be pro-
rated as appropriate. In addition, the Incentive will not be paid if certain
specific safety targets are not met.
The equity component is deferred for a further two year service period
following measurement of performance and reward is provided in the form
of shares in PaperlinX Limited.
ABN 70 005 146 350
7 Dalmore Drive
Scoresby, Victoria 3179
Tel: +61 3 9764 7300
Fax: +61 3 9730 9741
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Mr Allen's employment arrange
ments do not contain a fixed term and can
be terminated by PaperlinX on 12 months' notice or payment in lieu of
notice. His employment may be terminated immediately and without notice
on the grounds of misconduct, dishonesty or breach of duty.
can terminate his employment on 6 months' notice.
Relevant details of these remuneration arrangements will be in the 2013
2. Appointment of Chief Financial Officer
Mr Joost Smallenbroek has been promoted to the position of Chief
Financial Officer for the PaperlinX Group effective today.
Mr Smallenbroek, a resident of The Netherlands, joined PaperlinX in 2004
and is currently Corporate Finance Director for PaperlinX Europe, leading
Treasury, Tax and M&A functions in that area. His earlier background was
as an international tax adviser with Coopers and Lybrand (now PwC) and
Ernst and Young.
Based in Continental Europe, the new CFO will be well positioned to focus
on the Company's under
-performing businesses in that region.
Mr Smallenbroek has a thorough understanding of the issues facing our
business and has exhibited the qualities, which this Board believes, are
necessary to return our business to profitability,
said the Chairman.
Mr Andrew Price will continue in his role as Executive Director to assist the
Executive team in restructuring for the foreseeable future.
Mr Barker, said "These appointments, along with many other
restructuring initiatives, place PaperlinX in the best possible position to deal
with a difficult market and legacy management issues. In particular we are
pleased to be promoting experienced Executives from within the business. The
Board is delighted with the new structure and quality of the Executive team
now in place and believes we have an excellent opportunity to restore value in
this business. It was apparent to the new Board, almost immediately that in
order to turn the Company around there had to be a major cultural shift within.
A key element of this shift is the complete redesign of the remuneration
scheme. Our remuneration system now ensures that shareholder returns are
For further information, please contact:
Mr Michael Barker
Chairman, PaperlinX Limited
Phone : +61 (3) 9764 7300