Home World Business No chickenfeed for Ingham’s boss Mick McMahon after $11.6m payday

No chickenfeed for Ingham’s boss Mick McMahon after $11.6m payday

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As the Mick McMahon-led Ingham’s Group prepares for its first anniversary as a listed stock, he can at least breathe a sigh of relief over the fact that – after a rocky start – the chook stock has flown comfortably above its $3.15 IPO price. 

We would hate to think what investors would have made of McMahon’s $11.6 million pay packet – unveiled in its annual report late last month – if they had lost money on their investment. 

Ingham's chief executive Mick McMahon has done very nicely as Ingham's has flown. Ingham’s chief executive Mick McMahon has done very nicely as Ingham’s has flown. Photo: Jesse Marlow

This total remuneration figure included a $6 million cash IPO bonus for the successful completion of the float, and another $1.25 million in short-term cash bonuses. 

That was the easy bit. Later this month, Ingham’s shareholders will be asked to approve a long-term incentive package, currently worth $1.6 million, subject to performance hurdles.

Illustration: John Shakespeare Illustration: John Shakespeare 

At least he can count on the support of his mates at private equity group, TPG, which still holds a 47 per cent stake. But its local boss, and Ingham’s director, Joel Thickins​, is no doubt itching to dump the shares at a respectable juncture. 

So it’s no wonder that McMahon has been so vociferous in his attempts to knock back the naysayers who are nervous about the chook processor’s ability to maintain pricing power given the formidable competition and a sales channel dominated by market behemoths Coles and Woolworths. 

This may account for why Ingham’s came out hard against a story in The Australian Financial Review last month raising the prospect of a chook price war. 

Ingham’s said the story contained “potentially false and misleading claims” and went so far as to refer the matter to Greg Medcraft‘s crew at ASIC. 

So it will be interesting to hear if there are any updates when McMahon and his chairman, former Maccas burger flipper Peter Bush, front investors at the company’s annual general meeting this month. 

Musical chairs 

Speaking of Ingham’s chairman Peter Bush, he did not do badly out of the float either.

He picked up $200,000 worth of shares just for showing up, and $228,000 a year for the chairman’s gig.

Which is just as well given his $270,000 a year chairman’s role at Mantra Group may disappear if Accor succeeds with its $1.2 billion bid for the hotel group. 

And it is not  as if Bush will profit much from the stellar performance of Mantra, which has more than doubled its $1.80 float price. 

Bush’s only stock acquisition was in 2015 at $3.55 a share, meaning he won’t make much of a gain on the stock if the bid succeeds. 

And need we point out that Bush is also chairman of Southern Cross Media which may not survive the next round of media consolidation. 

Hum drum 

With the lightning storm over Australia’s spluttering energy policy continuing unabated, Mick McCormack the head of our biggest pipeline operator, obviously hasn’t had much time to take his frustrations out on his drum kit. 

His latest spray, at the AFR’s energy summit on Tuesday, was aimed at  “un-Australian” greeny groups like Lock the Gate, which are successfully bottling up coal seam gas projects in most states.

“We need activists and governments to put reason above ideologies and facts above folklore.”

Reason? Facts? We can only assume Mick did not hear of Tony Abbott‘s delusional ravings from London overnight. 

At least he didn’t give the greenies the sort of treatment he reserves for his bete noir: Central Petroleum boss, Richard Cottee, who has complained since last year about APA’s alleged role in the gas price rises. 

“This stuff belongs in fantasyland,” was the testy reply from McCormack.

He said the claims were “Ridiculous, untested, ignorant and clearly self-interested arguments designed to wind-up an anti-APA feeling.”

Pokie bonus 

One day after poker machine maker, Aristocrat Leisure, revealed that it will double the potential earnings of its CEO, Trevor Croker, an update from the former beer executive reveals that he picked up more than $640,000 worth of shares as part of his latest deferred short-term incentives bonus. 

It adds to the $5.7 million worth of shares he owned  before his appointment as chief executive in February this year.   

Follow CBD on Twitter. Got a tip? ckruger@fairfaxmedia.com.au

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