Galaxy Resources Limited (ASX: GXY)
announced on 4th April 2019 that the company would appoint Mr. Simon Hay as its new Chief Executive Officer (CEO).
The new appointment declared by the company will be effective from 1st July 2019.
Mr. Hay’s experience includes senior positions at major Australian mining companies such as BHP Billiton, WMC Resources and Iluka Resources. At present Mr. Hay is Head of Resource Development at Iluka, where he is handling the accountability for exploration and geology along with mine planning and development. Currently, Mr. Hay also handles major projects, engineering and technology, and innovation.
Mr. Hay has over ten years of operational experience on assets located across Australia, and he has spent five years in Asia leading Iluka’s Asia-Pacific and handled marketing activities for mineral Zircon.
As per the company’s Chairman Martin Rowley, Mr. Hay possesses a quintessential blend of skills and experience, which will be able to lead the company through its next phase of growth. Mr Hay’s recent success in guiding the development of greenfields projects in jurisdictions such as Sri Lanka and Sierra Leone seems convincing to proove that Mr. Hay is the best man to lead the company’s growth plans for the development of its two-world class international assets at Sal de Vida in Argentina and James Bay in Canada, where the company recently entered in a contract with Cree Nation
As per the Chairman of the company, Mr. Hay’s operational expertise could be applied towards optimization and extension of the company’s existing operations.
Mr. Hay expressed his joy over the appointment which was followed by the extensive interview where he stated that he is pleased to join the company. Mr. Hay also mentions that the company has an established and profitable operation at Mt Cattlin and strong financial metrics with no debt and A$400 million cash in hand.
During his tenure with different companies, Mr. Hay handled responsibilities which include the execution of capital projects with an annual budget of over $300 million. Mr. Hay also managed construction of $275 million mine in Western Australia and marketing and sales activity throughout Asia.
Mr. Hay also handled the accountability of restructuring and optimizing of various businesses to enhance profitability and efficiency.
His qualification includes BSc (Hons) in Chemistry and a Master of Applied Science in Metallurgy and a Graduate Diploma in Management. Mr. Hay is also a member of the Australian Institute of Company Directors.
Terms of employment:
As per the company, the employment will commence on 1st July 2019 and is valid until terminated under the terms of the employment agreement. Mr. Hay will be on a probation period of 6 months and will be eligible for a fixed remuneration of A$650,000 per annum inclusive of superannuation. Mr. Hay’s Commencement rights in recognition of incentives forgone include a total of 150,000 performance rights, which is convertible into one ordinary share of the company, with 50,000 performance rights vesting on each of 30th June 2020, 2021 and 2022 and is subjected to ongoing employment at the time of vesting.
Short term incentives of Mr. Hay include 75% of fixed remuneration, which will be payable in cash, subjective to 60% financial and 30% non-financial plus 10% behavioural. The incentive structure will lapse on cessation of the employment.
Long term incentives of Mr. Hay include 75% of fixed remuneration, which will be payable in performance rights. The long-term incentives are subjective to vesting conditions such as Relative Total Shareholder Return of 50% and operational and project-based milestones.
Long term incentives performance rights will be subject to a 3-year vesting or disposal restriction period, and Unvested performance rights lapse upon cessation of the employment.
The stock of the company closed at A$1.95 (as on 4th April), down by 2.74% as compared to its previous close.
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