Brambles Industries PLC
11 February 2004
BRAMBLES INDUSTRIES PLC
Company number: 4134697
Michael Ihlein appointed Brambles Chief Financial Officer
Brambles Industries Limited and Brambles Industries plc today announced that
Michael Ihlein will join Brambles as Chief Financial Officer on 22 March 2004.
Mr Ihlein will also be appointed to the Boards of Brambles as an Executive
Mr Ihlein, 48, joins Brambles after a long career with Coca-Cola Amatil Limited
(and related companies) where he has been Chief Financial Officer since February
1997. He was Managing Director of Coca-Cola Amatil, Poland, from 1995??97 and
previously held senior business development and treasury roles with the company.
David Turner, Brambles Chief Executive Officer, said: 'I am delighted to welcome
Mike to Brambles. He is a proven CFO of a major Australian listed company with
'With his strengths across the spectrum of finance and related disciplines,
combined with his valuable international operational experience, Mike will be a
strong addition to the Brambles team.
'Brambles is focussed on developing the full potential of all its businesses and
on the continuing execution of the restructuring programme in CHEP. I look
forward to Mike's significant contribution to the group.'
Mr Ihlein will be based in Sydney, Australia.
He will receive a total fixed remuneration package of A$1.5 million and will
participate in Brambles' long and short term incentive plans. He will also
receive certain sign-on benefits, details of which are set out below, consisting
of a cash payment and, subject to shareholder approval, a performance share
For further information, contact:
Investor Sue Scholes, Head of Investor Relations +44 (0) 20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0) 20 7269 7291
Investor John Hobson, Head of Investor Relations +61 (0) 2 9256 5216
Mobile +61 (0) 414 239 188
Media Jeannette McLoughlin, +61 (0) 2 9256 5255
Group General Manager, Corporate Mobile +61 (0) 401 990 425
Brambles is globally headquartered in Australia
Michael Ihlein - Career History
Chief Financial Officer
Coca-Cola Amatil Limited
• Appointed to CCA Board February 1997.
• Responsibility for CCA's finance and accounting functions, comprising
controllership, planning and reporting, taxation, risk and insurance, treasury,
investor relations, group strategic procurement and, until mid 2001, business
• Responsibility for restructuring, acquisition and divestment
Managing Director, Coca-Cola Amatil, Poland
Coca-Cola Amatil Limited
1994-95 Business Development Director
1993-94 Business Development Manager
1989-93 Group Treasurer
1985-89 Treasury Manager
1983-85 Senior Treasury Analyst
1981-83 Financial Analyst
WD & HO Wills (Australia) Limited
(subsidiary of Coca-Cola Amatil Limited until 1989)
• Various financial roles
• Bachelor of Business Studies (Accounting), University of Technology,
• Associate of Securities Institute of Australia
• Member of the Australian Institute of Company Directors
• Certified Practising Accountant (ASCPA)
• Director, Financial Executives International of Australia
Mr Ihlein resides in Sydney, Australia.
He is married with one adult child.
A leading global support services provider with operations in almost 50
countries. Brambles employs approximately 30,000 people and has assets of A$9.5
Its global businesses are CHEP (the global leader in pallet and plastic
container pooling services), Cleanaway (waste management and recycling), Recall
(information management) and Brambles Industrial Services (support services to
Brambles operates under a dual listed companies structure. Brambles Industries
Limited is listed on the Australian Stock Exchange and Brambles Industries plc
is listed on the London Stock Exchange. Its global headquarters is in Sydney,
Coca-Cola Amatil is the largest bottler of non-alcoholic beverages in the Asia
Pacific region. It operates in six countries: Australia, Indonesia, Fiji, New
Zealand, PNG and South Korea.
In 2003, CCA's revenue from sale of beverages was A$3.4 billion.
Michael Ihlein - Remuneration Details
• Total fixed remuneration (TFR), comprising salary and all benefits
other than incentive plans - A$1.5 million
• Participation in Brambles' long and short term incentive plans.
Short Term Incentive Plan
- If performance targets are achieved, the short term incentive
opportunity would be 40% of TFR. If targets are exceeded, the maximum potential
short term incentive opportunity could rise to 80% of TFR. For the current
financial year, plan payments will be determined by performance against two
metrics: profit before tax and goodwill amortisation (90% of the maximum
possible award payable) and personal objectives (10% of the maximum possible
- In order to receive any payment against personal objectives, a PBTA
threshold figure must be achieved.
- Short term incentive awards will be pro rated to the actual period of
employment in the current financial year.
Long Term Incentive Plan
- Award multiple under each element of the plan will be 52.5% of TFR.
Subject to shareholder approval to be sought at the 2004 Annual General
Meetings, the first annual grant of share options and performance shares will be
made using the volume weighted average price of shares in Brambles Industries
Limited for the week up to and including Mr Ihlein's employment start date.
Performance against the specified performance conditions will be measured over
the period from 30 June 2004.
Details of the current Plans were outlined in the Brambles 2003 Annual Report.
A worked example of Mr Ihlein's annual remuneration for 2004 is set out at
The following sign-on arrangements apply:
• Cash payment of A$300,000 on the first anniversary of employment.
• Subject to shareholder approval, 200,000 performance shares, subject
to prevailing performance hurdles. Performance against these hurdles will be
measured over the period from 30 June 2004.
Key aspects of contractual terms include:
• The service contract may be terminated by Brambles without cause on
giving 12 months' notice and by Mr Ihlein without cause on giving 6 months'
• Other than for cause or in the event of non-performance, Mr Ihlein
will be entitled to a payment on termination equal to his annual TFR plus any
accrued leave or other entitlements.
• Mr Ihlein would be required to mitigate loss on termination, meaning
any termination payment made by Brambles would be reduced by the amount of any
benefits to be received by Mr Ihlein under any new employment.
Michael Ihlein - A worked example of annual remuneration for a full financial
Set out below is a worked example of the annual remuneration Mr Ihlein might
receive for a full financial year, if he and Brambles performed to the 'target'
level. To perform at that level, the budget set by the Board at the beginning of
the financial year would need to be achieved and Mr Ihlein would need to meet
his own rigorous personal performance hurdles. The calculations below include
notional values ascribed to Options and Performance Shares, based on certain
assumptions, details of which are set out in the notes to the table. (It should
be noted that Mr Ihlein will only be employed for part of the current financial
year, and therefore his TFR and any short term incentive payment will be pro
Element Total Fixed 'At risk' Estimated total
Remuneration remuneration remuneration at target
(TFR) at target performance (TFR + 'at
performance risk' remuneration at
Total Fixed A$1,500,000
Short Term Incentive:
• Cash bonus at target A$600,000 1
Long Term Incentive
• Options A$63,000 2
• Performance Shares A$63,000 2
Total A$1,500,000 A$726,000 A$2,226,000
1. The figure in the above table, which is based on a full year's
employment, assumes the achievement of targeted improvement in Brambles' PBTA in
2004, plus full achievement of personal objectives.
2. In line with the requirements of the Australian Securities &
Investments Commission, Brambles has adopted an approach to the valuation of
outstanding unvested equity based awards which was detailed in the 2003 Annual
Report. In summary, a modified Black Scholes model is applied to the awards. The
resulting value is then discounted by 60% to reflect the expected probability at
the time of grant of meeting the performance hurdles. The discounted value is
then equally allocated across the vesting period. The basis of, and assumptions
used in, these calculations is consistent with the approach adopted in the 2003
Annual Report and Accounts. They will, however, be reviewed in the context of
the 2004 Annual Report and Accounts in light of applicable rules and practices
at that time. The numbers ultimately disclosed in the 2004 Report and Accounts
may therefore vary from those shown above.
This information is provided by RNS
The company news service from the London Stock Exchange