WA engineering and construction company Clough Ltd has appointed its third chief executive in less than seven months, with John Smith due to take over from John Cooper on August 1, the company has announced.
Mr Smith had previously served as founding chief executive of Subsea 7, formed from a merger of DSND, Halliburton Subsea, Subsea Offshore and Rockwater. Since 2004, he has headed his own oil and gas consulting business.
Mr Cooper took over the role of chief executive from David Singleton on January 9 when South African company Murray & Roberts Ltd took firm control of Clough. Mr Cooper will remain on the Clough board as a company director, according to a company announcement.
The full text of a company announcement is pasted below
Engineering and construction company Clough Limited (ASX:CLO) today announced the appointment of a new Chief Executive Officer, John Smith.
Clough Chairman Mike Harding welcomed Mr Smith to the company.
John Smith is an engineer with 30 years broad international experience within the oil & gas contracting industry, having held a succession of engineering, project management, general and executive management positions in the UK, Norway and Australia.
Recently he led the strategic process resulting in the formation of Subsea7 and was CEO of that company for the first two years of its existence. John has demonstrated both strong operational and strategic leadership of contracting organisations similar in size and
complexity to Clough. Clough is determined to grow its business, particularly within the oil & gas sector and John's strong industry knowledge will be a major asset to that process.
John Cooper, current Clough CEO, will remain in his position until Mr Smith joins the company on the 1st August this year. Mr Cooper will continue his relationship with Clough as a Company Director.
"I would like to thank John Cooper for steering the company over the past six months and in particular for developing and implementing the first stages of Clough's growth strategy," added Mike.
John Smith's remuneration package is attached.
REMUNERATION PACKAGE
The principal terms of Mr. Smith's remuneration package as agreed by the Clough Board are set out below. All of the equity components of the package are subject to shareholder approval.
A performance-based remuneration package has been provided and the terms include:
- A total fixed cost of employment of $1,300,000 per annum, including base salary, all allocations to superannuation and all taxes including any fringe benefits tax.
- An annual incentive payment of up to 80% of base salary based on successful performance to the satisfaction of the Board.
Non cash benefits include:
- Relocation costs of up to $10,000 per month for up to 12 months for short term accommodation until permanent accommodation is arranged.
- Reasonable legal costs and stamp duty incurred in purchasing a home in Perth
- A lump sum of $90,000 to cover sundry costs of relocation.
- Return flights between Perth and Norway for each completed 12 months service will be provided to Mr. Smith, his spouse and children.
- Cover under a Salary Continuance Plan and Life Insurance Plan.
Subject to shareholder approval Mr. Smith will also be issued with 6 million options in the company with the following conditions:
- Options will be exercisable at a premium of 10% to the average market price during the week prior to the date of execution of the contract of employment.
- Options can be exercised after the third (3 million), fourth (1 million), fifth (1 million) and sixth (1 million) anniversary dates of the commencement of employment, subject to certain performance criteria.
