Big retirement payment

Press, 24 September 1987, Page 28

Big retirement payment

NZPA-AAP Melbourne BHP shareholders learned on Tuesday that former BHP executive director, Mr David Adam, received several hundreds of thousands of dollars — and probably substantially more than $1 million — when he retired from the company last year. BHP chairman, Sir James Balderstone, told BHP annual general meeting that “certain payments” to Mr Adam led to the emoluments to executive directors, other than salaries, rising to SI.BM in 1986-87 from $207,000 in the previous year. Sir James later said that the bulk of the allowance, recorded in notes to the company’s accounts, related to payments to Mr Adam under an arrangement with the company, but he refused to specify how much was involved. "I think in everyone’s interests we should not go into that any more,” Sir James said. Mr Adam, who was general manager of corporate

affairs and a BHP director since 1977, was credited as the legal brains behind BHP’s successful defence against take-over bids by Bell Resources, Ltd’s, Robert Holmes a Court, now a BHP director. Sir James said Mr Adam had made a major contribution to the company from 1971 when he joined as chief legal officer until his retirement on December 31. Last year the Victorian Corporate Affairs Commission charged Mr Adam with breaching the Companies Code in May during a Bell Resources takeover bid, but Mr Adam denied the charges which were later withdrawn. In reply to shareholders’ questions about the company’s operations, Sir James said BHP was reviewing the possibilities of floating other parts of the company, such as the float of BHP Gold Mines, Ltd. “It would be some considerable time before any proposition was brought to

the board, having regard particularly to the review of corporate tax announced by the Treasurer (Mr Paul Keating) in his Budget speech last week,” Sir James said. BHP managing director, Mr Brian Loton, who confirmed later that a thorough corporate review was under way, said BHP would hope to be able to give some direction for its corporate restructure within six months. The meeting elected as BHP directors Mr Holmes a Court, Elders chief, Mr John Elliott, Western Mining Corporation chairman, Sir Arvi Parbo, and Woodside Petroleum chairman, Mr Bill Rogers. The meeting also approved an executive share scheme under which up to 2 per cent of the company’s capital can be issued to senior executives. Sir James, in his report to shareholders, said current market values of investments exceeded book value by about S7OOM

with the main contribution coming from a 19.9 per cent holding in Elders. “We are — like all shareholders — still awaiting full details of the proposed reconstruction of that company, but, based on our present knowledge, we expect to support the proposals,” he said. Shareholders quizzed the board about the effect of capital gains and other taxes on small shareholders over the BHP Gold Mines float, but the stock reply was that individuals should seek their own tax advice. Sir James and Mr Loton said shareholders had all greatly benefited from the decision to float BHP Gold. One shareholder said Mr Elliott seemed to have restructured Elders better than the BHP Gold float because Elders’ shareholders would not have to pay to participate in the floating of the company’s brewing, agribusiness and finance arms.