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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.
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13 Articles
13 Articles
Australia's NEXTDC CEO to forgo fiscal 2027 bonuses after forecast cut ...
·London, United Kingdom
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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.
·New York, United States
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Sydney Morning Herald+3 Reposted by 3 other sources
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.
·North Sydney, Australia
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Coverage Details
Total News Sources13
Leaning Left3Leaning Right3Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 27%
C 46%
R 27%
Factuality
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