Australia’s NEXTDC CEO to Forgo Fiscal 2027 Bonuses After Forecast Cut, Project Delay
The board also withdrew a pay rise proposal and cut directors’ fees by 10% as about A$140 million in customer revenue is deferred.
- On Monday, NEXTDC announced significant leadership changes and immediate cost reductions, with CEO Craig Scroggie forfeiting all FY27 bonus opportunities and Chairman Douglas Flynn planning to retire once a successor is appointed.
- Investor concern regarding the M3 Melbourne data centre power delay prompted these measures, after energy distributor Jemena suspended upgrades due to community opposition and the company slashed FY27 revenue guidance last week.
- Electricity upgrade delays will defer about $140 million in contracted customer revenue this financial year, prompting the board to withdraw a $300,000 pay pool increase while Non-Executive Directors accepted a voluntary 10% fee reduction.
- At the November 20 annual general meeting, Flynn will stand for re-election before retiring, as the board has engaged global search firm Spencer Stuart to identify a new Chair and additional independent directors with infrastructure experience.
- Management remains focused on minimizing the M3 facility's impact, while Scroggie assured the market the revised financial outlook poses no debt risk, stating the group remains "in compliance with financial covenants.
15 Articles
15 Articles
NextDC unveils board renewal measures following revised FY27 guidance
NextDC has announced a series of board and governance changes ahead of its AGM on 20 November, as the company responds to investor concerns following delays to the M3 Melbourne project and its revised FY27 earnings guidance. The ASX-listed data centre operator said chairman Douglas Flynn will step down once a successor has been appointed and a short transition period has been completed. Executive search firm Spencer Stuart has been tasked with e…
Australia's NEXTDC CEO to forgo fiscal 2027 bonuses after forecast cut ...
Nextdc CEO to Forgo Incentives After Australia Data Center Delay
Nextdc Ltd.’s CEO will give up his FY27 short term incentive and long-term incentive opportunities after the Australia data center developer cut its earnings guidance due to delayed power supply at one of its major projects in Melbourne.
Sydney Morning Herald
AI darling NextDC announces board and pay purge after Melbourne power disaster
The data centre group will lose its chairman, other board members will take a pay cut and the CEO will lose all of his bonuses this year in response to last week’s disastrous downgrade.
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