KEY POINTS:
The Warehouse's head honcho Ian Morrice may be in line for this year's biggest chief executive package - just short of $4 million.
The package includes a one off performance pay-out which may have related to share price increases following the long running takeover saga.
Morrice is in
line to receive a $3.9 million package - well up on the top CEO earnings for the 2006 year of $3.1 million, earned by Westpac's former New Zealand chief Anne Sherry.
The company's annual reports reveal Morrice received a total remuneration of $3.908 million for the 2007 financial year to June 29.
It was boosted by a $1.665 million incentive payment which "became payable on the achievement of certain specified performance hurdles" agreed at the start of his employment.
Morrice joined the company in May 2004.
His total pay last year was $2.3 million.
Last year his take home pay also included an additional remuneration of $350,000 - paid in compensation for the loss of benefits as a result of foregoing a long term incentive plan with his previous employer.
His base salary for 2007 has increased by $65,000 to $1.365 million while his annual performance base payment also rose from $696,000 in 2006 to $878,000 in 2007.
The report does not state what the specified performance hurdles were for Morrice's one off pay-out but they are likely to be linked to share price.
The Warehouse share price rose more than 60 per cent in the year to June 29, rising as high as $7.32, on speculation the retail chain would be sold to one of three potential buyers.
Stephen Tindall, Foodstuffs and Woolworths have all expressed interest in buying the company.
The share price has dropped back since the Commerce Commission ruled that neither of the two supermarket chains could buy it.
Foodstuffs, Woolworths and The Warehouse itself have appealed the Commerce Commission's decision in the Wellington High Court.
The hearing ended this week but a decision is not expected for several weeks.
Other contenders for best paid chief executive include Fonterra's Andrew Ferrier - who last year earned close to $3 million - and the head of New Zealand's largest listed company, Telecom.
New Telecom boss Paul Reynolds has the potential to earn a package worth around $4 million.
Its three components include a base salary of $1.75 million, a long-term performance bonus of share rights to the value of $1.75 million and a performance incentive of up to $1.75 million.
The performance incentive is made up of 60 per cent cash and 40 per cent shares or, at the board's discretion, paid 100 per cent in cash. The salary and bonus are pro-rated for 9 months' employment.
In 2005 Guinness Peat Group New Zealand chief Tony Gibbs earned more than $5 million - although his pay can vary dramatically based on the performance of the company.
