A2 Milk issues shares worth $1.2m to CEO for transition

A2 Milk managing director and chief executive Jayne Hrdlicka. Photo / NZ Herald.

A2 Milk shares worth $1.26 million have been issued to the company's chief executive and managing director Jayne Hrdlicka as part of the deal to lure her away from her previous employer, Qantas.

In a notice to the NZX, A2 Milk said the time-based 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.

The notice said 90,914 shares were issued to Hrdlicka. The stock traded today at $13.89, down 36 cents or 2.5 per cent.

At today's price, the shares are worth $1.26 million.

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.

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 cent to $413.6m, driven by a 41.4 per cent lift in turnover to $1.31 billion.

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