Marcelino Fernandez Verdes, the executive chairman of CIMIC, the company formerly known as Leighton, has joined the echelons of Australia's highest-paid bosses with his total remuneration for 2016 hitting a whopping $17.2 million.
His massive pay packet came after a strong year for CIMIC, which posted an 11.5 per cent lift in net profit after tax to $580.3 million – at the top end of its guidance.
It also came as the company has been rocked in recent weeks by the charging of two of its former executives -- former chief financial officer Peter Gregg and former Leighton Offshore managing director Russell Waugh — with falsification of books offences relating to an alleged suspect payment to a Dubai-based consultant.
It forecast a stronger 2017, with net profit expected to come in at between $640 million and $700 million depending on market conditions. The forecast represents an increase of between 10 per cent and 21 per cent on 2016.
CIMIC's shares rose 7.6 per cent to $38.85 on the positive results that were boosted by the company's acquisitions of engineering groups Sedgman and UGL during the year.
Spanish-born Mr Fernandez Verdes, who is based in Australia and joined CIMIC after the allegedly suspect payments were made, received the big pay packet courtesy of the vesting share appreciation rights that added $13.7 million to his total pay packet.
Mr Fernandez Verdes took no cash salary but instead received a $3 million cash bonus for his role at CIMIC. It compared to the engineering company boss' total pay packet of $3.8 million in 2015.
He also gets paid by CIMIC's majority shareholder Hochtief. According to that company's 2015 annual report, Mr Fernandez Verdes received €6.3 million ($A8.8 million). He stepped down as CEO during the year and is tipped to become the boss of ACS Grupo, the Spanish outfit that owns Hochtief.
The allegedly suspect payments that have led to the charging of Mr Gregg and Mr Waugh are subject to a Australian Federal Police and Australian Securities and Investments Commission probe that is ongoing.
In its annual report, also released on Wednesday, CIMIC said it anticipates that the resumed Senate foreign bribery inquiry will again target the issues raised by the AFP investigation.
CIMIC for the first time included a matrix map in its annual report that rated bribery and corruption as its second-highest risk next to public safety.
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