A2 Milk CEO Jayne Hrdlicka sells down transition share rights

Jayne Hrdlicka was chief executive of the Qantas unit, Jetstar Group, for five years before she joined A2 Milk.

As expected, A2 Milk chief executive Jayne Hrdlicka has sold a further A$2 million ($2.1m) worth of time-based share rights granted in relation to her transition to the company last year.

In a stock exchange announcement, the company said Hrdlicka had sold 61 per cent of the rights issued to her in June and August this year to meet expected tax obligations.

A2 said the rights were granted as a one-off transition benefit as compensation for the forfeiture of incentive entitlements from her former employer as a result of her resignation to take up the job with A2 Milk.

As part of her package, Hrdlicka settled on compensation of about two thirds of the value of her then Qantas entitlements.

A2 Milk regarded 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.

Hrdlicka was chief executive of the Qantas unit, Jetstar Group, for five years before she joined A2 Milk.

Hrdlicka caused a stir last September when she sold about 340,000 shares in a2 Milk for a total of around $4.3m.

She now retains 95,338 shares in the company with a market value of approximately 85 per cent of her fixed annual remuneration before tax, as well as 410,099 performance rights received under the long-term incentive plans for the 2019 and 2020 financial years.

Last week A2 shares jumped after the company said it expected annual operating profit margin would be stronger than previously communicated and in the range of 29-30 per cent.

The alternative milk and infant formula company said it expected to see strong revenue growth, supported by its investment in China and the United States, in the current financial year.

The dual-listed company previously reported its June year earnings before interest, tax, depreciation and amortisation (ebitda) jumped by 46.1 per cent to $413.6m, driven by a 41.4 per cent lift in turnover to $1.31 billion.

The shares jumped more than 14 per cent to $14.62 following the result. They closed today down 4c at $14.80.