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Joint Managing Directors agree to new employment arrangements

08/10/2013

Charter Hall today announced that it had agreed new employment contracts to replace the current contracts entered into in 2005 by both Managing Directors, Mr David Harrison and Mr David Southon.

In relation to the new arrangements, the commencement date of which is subject to approval of Charter Hall’s securityholders at the Annual General Meeting on 12 November, Chairman Mr Kerry Roxburgh said:

“I am pleased to confirm that both Mr Harrison and Mr Southon have confirmed their ongoing commitment to the Charter Hall Group by entering into new employment contracts providing for much longer notice periods and the introduction of restraint provisions. These new arrangements will assist Charter Hall in substantially mitigating key person risk.

In summary, the new contractual arrangements that will come into effect if securityholders approve a one off special 3 year long term incentive award for each managing director provide for:

• a $30,000 increase in their Fixed Remuneration for FY14 to $1,080,000;

• no change to David Southon's at-risk component of 55% of his total remuneration package (with at target performance providing Mr Southon with the opportunity to receive a 2.89% increase in his total remuneration opportunity);

• the at-risk component of David Harrison's remuneration being increased to 58.5% of his total remuneration package (with at target performance providing Mr Harrison with the opportunity to receive an 11.4% increase in his total remuneration opportunity);

• the current 3 month notice period being extended to 12 months where Charter Hall gives such notice and 6 months where notice is given by a managing director;

• for the 1st time there will be a non-solicitation / non-compete period of 12 months from the date notice of termination is given;

• for the 1st time there will be a non-solicitation / non-compete period of 12 months from the date notice of termination is given;

• in consideration for the increase in the notice periods, for agreeing to restraint provisions and other terms & conditions described later in this announcement, a binding securityholder resolution will be put before the 12 November Annual General Meeting to make a special grant of 100,000 CHC performance rights to David Southon and 300,000 to David Harrison. Vesting of these grants is conditional upon, among other things, the managing directors not having resigned or beenPage 2 of 4summarily dismissed during the 3 years from 4 October, 2013. Also, vesting is not possible until the 3 year anniversary of signing their contract, upon CHC achieving its long term incentive performance hurdles measured at the end of FY16 and upon a number of operational and business growth milestones set by the Board, being progressively achieved.

The attached appendix contains an overview of additional key details of Mr Harrison and Mr Southon’s contracts and remuneration packages going forward.

Download the PDF version and appendix

For further information, please contact:

David Harrison 
Joint Managing Director 
T: +61 8908 4033 
david.harrison@charterhall.com.au
David Southon
Joint Managing Director 
T: +61 8908 4025 
david.southon@charterhall.com.au
For investor enquiries: 

Kylie Ramsden 
Head of Listed Investor Relations 
Charter Hall 
T: +61 2 8295 1016 
kylie.ramsden@charterhall.com.au
For media enquiries: 

Rachel Mornington-West 
Head of Marketing and Communications 
Charter Hall 
T: +61 2 8908 4093 
rachel.mornington-west@charterhall.com.au

About Charter Hall
Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 22 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $10 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth. The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.