VDM Group paid its top executives cash bonuses despite the struggling contractor posting a $54.8 million annual loss.
Results released yesterday show the design and construction company paid five executives a total of $325,000 in bonuses, including $150,000 for managing director Andrew Broad.
The managers received the rewards based on non-financial performance measures, worth up to 40 per cent of potential short-term incentive payments.
No cash bonuses were paid in the previous year, when VDM had a $35.5 million loss. Since then the contractor had a capital raising, sold off major assets and restructured the business to avoid a potential collapse.
"There's been a lot of hours put in by everyone including myself to get us to this point," Mr Broad said. "A lot of people wrote us off as well. The fact that we're still here is testament to how dedicated my team has been."
Mr Broad said VDM's board had since changed the bonus system to be wholly based on financial measures.
His total remuneration for 2011-12 was $815,000. The managing director said he had declined a pay rise offered in December.
VDM's annual results were in line with guidance given to the market in June. The loss included a first-half $31.5 million write-down of former subsidiary Cape Crushing and Earthmoving Contractors, which was sold earlier in the year.Mr Broad said a problem contract, which stripped another $4.8 million from the bottom line, was on the verge of being closed out.
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