Top Paperlinx executives will take significant pay cuts after its European disaster cost the company more than $300m and saw it retreat to the Asia Pacific.

Chief executive Andy Preece sees his $889,220 base salary docked 20 per cent while chief financial officer Wayne Johnson takes a 10 per cent haircut to his $510,000.

Board of directors salaries also take a hit from September 1. Chairman Robert Kaye drops from $300,000 to $180,000 and non-executive directors from $100,000 to $80,000.

Kaye’s salary has previously been criticised by shareholders considering the company’s performance.

[Related: The ups and downs of Paperlinx]

Paperlinx – which will likely be renamed Spicers on October 23 – says the pay cuts are ‘as a direct consequence of the reduced complexity of the company’. The company will operate in this region only.

Preece earned an $119,059 bonus, 20 per cent of his maximum, mostly for his work at Spicers before taking over as chief executive in February. Johnson got $38,070 for the two months he was CFO.

The annual report also discusses the financial after-effects of Andrew Price’s dramatic sacking as chief executive in February without explanation.

While the report still gives no reasons for his sacking, it says executive contracts “may be terminated immediately and without notice on the grounds of, but not limited to, dishonesty, fraud, negligence, dereliction of duty, wilful disobedience, misconduct or breach of duty”.

In this scenario, the executive is not given the rest of their contract’s salary or any other termination payments.

The report goes onto say ‘Price has received no termination payment or benefits from the company, other than paying his base salary and superannuation’ up to the date of termination.

Paperlinx also on August 19 cancelled 35 million options worth $371,500 issued to Price, ‘in connection with’ his termination.

The report says options are forfeited if the executive, in Paperlinx's opinion, acts fraudulently dishonestly or in material breach of any obligations.

Price still owns more than 10 million shares, worth about $240,000 at current share price.

Price is suing Paperlinx over his dismissal, with a Federal Court judge now ordering the case to proceed to another hearing on October 28 and giving Paperlinx until October 14 to respond to Price's claims and present a defence.

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