NextDC executive incentives cut after profit downgrade
Key points
- NextDC CEO Craig Scroggie will forgo all short- and long-term incentives for the 2027 financial year.
- Members implemented an immediate 10% voluntary fee cut and withdrew a resolution to lift the director fee pool to $2.5 million.
- The changes aim to appease investors following recent power delays at the Melbourne facility and a profit downgrade.
NextDC (ASX:NXT) CEO Craig Scroggie agreed to forfeit all of his short- and long-term incentive opportunities for the 2027 financial year.
The move follows recent operational setbacks, including power delays at the Melbourne facility and a revised profit outlook.
"The board shares the disappointment of investors resulting from our revised guidance and share price performance," said NextDC Chairman Douglas Flynn.
In addition to the CEO forfeiting approximately 292,000 rights, non-executive directors applied an immediate 10% voluntary fee reduction to address stakeholder concerns.
Following the announcement, the NextDC share price was down at $5.44.
Chairman Douglas Flynn also confirmed plans to retire once a successor is appointed, with executive search firm Spencer Stuart managing the recruitment process.
Fellow board member Stuart Davis intends to step down once the director transition is finalised following the upcoming Nov. 20 annual general meeting.
