NextDC chief forgoes bonuses after Melbourne data centre delay

Summarised from 2 outlets · 3 reports · Updated 26 Oct, 02:01 · Archive

NextDC chief executive Craig Scroggie is giving up his annual incentives worth up to 7.5 million dollars after a power supply delay at the company's Melbourne facility.

NextDC chief executive Craig Scroggie is giving up his FY27 short-term and long-term incentive opportunities after the data centre developer cut its earnings guidance due to a power supply delay at its major M3 project in Melbourne's western suburbs.

The company's board members will take a ten per cent reduction in their fees. Chair Douglas Flynn and non-executive directors have agreed to this cut, and NextDC has withdrawn a resolution to seek shareholder approval to increase the maximum annual remuneration of non-executive directors from 2.2 million to 2.5 million dollars.

NextDC's shares plunged last week, erasing around 3 billion dollars from its market value, after the company slashed full-year earnings guidance by 140 million dollars. Power company Jemena paused installation of 22-metre concrete poles needed to supply the M3 data centre with additional electricity following community backlash. NextDC has cut its capital expenditure program by 750 million dollars and is considering selling development sites to conserve liquidity.

Chair Douglas Flynn has reaffirmed his intention to retire from the board once a new chair is in place. Global search firm Spencer Stuart has been hired to find a new independent non-executive director and chair, with ideal candidates having data centre, energy or infrastructure development experience.

How it is being reported

• Data centre boss loses bonuses after stock sell-offNextDC is shaking up its board and its high-profile boss is giving up his incentives after its shares crashed following delays in a major state project.Perth Now · 26 Oct, 01:42
• Data centre boss loses bonuses after stock sell-offNextDC is shaking up its board and its high-profile boss is giving up his incentives after its shares crashed following delays in a major state project.The West Australian · 26 Oct, 01:42
• NextDC CEO Craig Scroggie to forgo incentives after Melbourne data centre delayNextDC’s chief executive will give up his FY27 short-term incentive and long-term incentive opportunities after the data centre developer cut its earnings guidance.The West Australian · 25 Oct, 23:15

In this story: NextDC · Craig Scroggie · Douglas Flynn · Melbourne · Jemena · West Footscray · Spencer Stuart

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