A2 Milk managing director and CEO Jayne Hrdlicka, during a launch of the partnership between A2 and Fonterra's Anchor milk brands which have started supplying to North Island stores. 2 August 2018 New
A2 Milk managing director and CEO Jayne Hrdlicka, during a launch of the partnership between A2 and Fonterra's Anchor milk brands which have started supplying to North Island stores. 2 August 2018 New
A2 Milk chief executive and managing director Jayne Hrdlicka intends to sell some of her newly-acquired a2 Milk shares to cover her Australian tax obligations but she also wants to build a shareholding in the company.
Dual-listed a2 Milk said earlier today that the last tranche of transitional rights usedto entice Hrdlicka away from her previous employer - Qantas - had vested.
"In Australia the tax obligation sets in upon vesting of the shares," Hrdlicka said in a statement to the Herald.
"I will at some point need to sell a portion of my shares to cover the tax obligation as well as other financial investment obligations," she said.
"This tranche of shares however will also be used to begin building a share position which will ultimately be at least equal to my fixed remuneration," she said.
The 90,914 vested shares were worth $1.26 million at today's prices.
Hrdlicka caused a stir last September when she sold about 340,000 shares in a2 Milk for a total of around $4.3m.
In a notice to the NZX earlier today, A2 Milk said the time-based rights were granted as a one-off transition benefit as compensation for the forfeiture of incentive entitlements from Qantas.
As part of her package, Hrdlicka settled on compensation of about two thirds of the value of her then Qantas entitlements.
A2 Milk regards the "transition" shares - compensation for value foregone as a result of Hrdlicka's move away from Qantas - as being separate from any awards that might occur under incentive schemes.
Jayne Hrdlicka was previously CEO of Jetstar.
Hrdlicka was chief executive of the Qantas unit, Jetstar Group, for five years before she joined A2 Milk.
A2 Milk last week reported a 47 per cent leap in net profit to a record $287.7m for the June year - the first full year under Hrdlicka's control.
The alternative milk and infant formula company's earnings before interest, tax, depreciation and amortisation (ebitda) jumped by 46.1 per cet to $413.6m, driven by a 41.4 per cent lift in turnover to $1.31 billion.
Hrdlicka has just completed her first full financial year in the role but has already cemented in some far-reaching far-reaching changes.
A2 Milk has close to half a billion dollars cash on its balance sheet and it level pegs with Meridian as one of the country's biggest companies.
A2 milk formed a joint venture with Fonterra to jointly market milk last year.
Most cows carry both A1 and A2-type proteins, but a2 Milk specialises in milk containing just the A2 variety, which it says can help people who have trouble digesting standard milk.
Despite the record earnings, a2 Milk's share price has been under downward pressure since last week's resuilt.
