AWB HAS been forced to defend ex gratia, or non-compulsory, retirement payments to the three retired grower directors that supported the normalisation of the company last year.
At the AWB annual general meeting (AGM) in Melbourne, AWB chairman Peter Polson repeatedly denied shareholder accusations that the payments were tied to the directors’ support of the normalisation process.
Former AWB chairman Brendan Stewart received $225,000, and Steve Chamarette, WA, and Brendan Fitzgerald, SA, were paid $120,000 apiece upon their retirement, included in the full-year results to September 30.
Other former grower directors ousted prior to the company’s normalisation, Russell McKenzie, Rodger Schirmer, Colin Nicholl and Xavier Martin did not receive retirement payments. The quartet did not support the normalisation of AWB.
“The four directors who did not receive payments resigned, while Mr Stewart, Mr Chamarette and Mr Fitzgerald retired, having their tenure cut short due to the normalisation of the company” Mr Polson explained.
Failed AWB board candidate Stephen Mayne questioned such large ex-gratia payments to the directors, especially in light of AWB’s 2009 losses of $250 million.
He asked whether there was any correlation between the payments and the directors’ stance on normalisation, but Mr Polson denied there was any such link.
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