PaperlinX shareholders vote down remuneration

Some 56 per cent of shareholders rejected the report, with Price and fellow directors Robert Kaye and Michael Barker joined at the AGM by major institutional shareholder Allen Gray in vetoing the remuneration report, which amongst other items provided favourable terms to former director Tony Clarke and former CEO Toby Marchant.

At the AGM Price was appointed executive director and charged with spearheading new restructuring and cost reductions in the UK and Europe, with the aim of saving $13m a year. Price set off for the UK immediately.

Michael Barker, chairman, PaperlinX says, “This new board is fully committed to taking decisive action to restore PaperlinX to profitability. This new restructuring plan and Andrew Price’s appointment demonstrate our immediate priorities. We will continue to strengthen our already profitable businesses in Australia, New Zealand, Asia and Canada, and direct the future of the company towards a diversified range of products with growth ahead of them.”

PaperlinX plans to reduce its UK workforce by 12 per cent in response to depressed trading conditions in Europe, with 200 jobs to be lost. The UK restructure would cost $3m, but combined with cost cuts, would deliver $13m in annual benefits.

PaperlinX says based on decisions made to date, in total, European restructuring in the 2013 financial year will see 370 employees leave the business.

PaperlinX recorded a net loss of $266.7m for the financial year ended June 30, 2012 after writing off the value of its European operations. Barker told PaperlinX shareholders that the loss of $266.7m in the 2012 financial year was an unsatisfactory figure.

Dave Allen, interim chief executive, Paperlinx says, “We are accelerating growth in our diversified businesses through both organic growth and bolt-on acquisitions such as Canterbury Packaging in New Zealand, all against the backdrop of a much leaner, flatter organisational structure.”

Allen says paper volumes continued to decline and were greater than planned in Europe and Australia, New Zealand and Asia.

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