Question
Whitehaven's three most prominent growth projects are to restart the Vickery mine that Rio Tinto used to operate in NSW, expand its existing Narrabri mine
Whitehaven's three most prominent growth projects are to restart the Vickery mine that Rio Tinto used to operate in NSW, expand its existing Narrabri mine and build a new mine in Queensland's Bowen Basin at Winchester South.
The progress made on those projects between now and June 2024 will carry a 15 per cent weighting on Mr. Flynn's long-term incentive payments. Mr. Flynn's total remuneration slumped from $6.2 million in fiscal 2019 to $2.35 million in fiscal 2020, after a tough year in which coal sales fell to a five-year low, profits collapsed by 95 per cent and Whitehaven shares dived. Mr. Flynn's fixed remuneration in the year ahead, including superannuation, will be $1.53 million. If all Mr. Flynn's bonuses vested to the maximum degree in fiscal 2021, he could earn up to $5.27 million.
a. Do you think that the remuneration scheme explained in the article will work in the way intended under agency theory for Whitehaven Ltd? Why or why not?
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