Executive pay at Seven West Media found to be “erroneous”
November 11, 2022
Seven West Media (SWM) has had to reissue its 2022 remuneration report after discovering it was based on miscalculations by external consultants Ernst & Young (EY).
The Australian media giant said it discovered the error after a review of the original figures from the 2020 fiscal year by EY, which is considered one for the four biggest accounting firms in the world.
London-based EY incorrectly assessed that four SWM executives were eligible for substantial long-term incentive pay-outs.
Australian billionaire chairman Kerry Stokes is the chairman of SWM, whose huge media empire includes TV station Channel 7 and The West Australian newspaper along with radio stations, magazines and websites.
Its flagship shows include 7NEWS, Big Brother, The Voice, The Chase Australia, Better Homes and Gardens, and Home and Away.
SWM is also an official broadcaster of Australian Football League (AFL) fixtures and matches featuring Australia’s world-famous national cricket team.
The ASX-listed firm revealed the error in a statement titled ‘FY20 LTI Outcome and Updated 2022 Remuneration Report’, which was released with the reissued remuneration report.
It explained: “Unfortunately, the original FY20 LTI testing report provided by the external consultants was erroneous as it did not take into account dividends paid by companies that are included in the relevant index, which, at that time, resulted in an incorrect outcome that the FY20 LTI had vested.
“The Remuneration & Nomination Committee has now considered the corrected FY20 LTI TSR testing data inclusive of dividends, which shows that the FY20 LTI performance hurdle was not achieved.
“Consequently, the Committee has determined that the FY20 LTI has not vested and participants will not receive an FY20 LTI award.”
SWM executives affected by the error include chief revenue officer Kurt Burnette, chief financial officer Jeff Howard, chief people and culture officer Katie McGrath, and commercial director Bruce McWilliam.
Last Updated: 11 November 2022