Xero shares bounce back as co. added to the ASX100
Xero shares, which slid 6.03% from $A32.88 to $30.85 on Monday on news of Rod Drury's resignation as chief executive, have bounced back.
The stock was up 0.52% to $A32.44 in midday ASX trading, with gains through the week consolidated by today's announcement that Xero is joining the ASX100.
Cleanway Waste Management also joins the benchmark index.
The two companies making way are merger-challenged publisher Fairfax and telecommunications company Vocus, whose shares have slid on a series of profit downgrades.
Xero, which was previously dual-listed, delisted from the NZX, where it was a member of the NZX50 and NZX10, on January 31.
Just as the stock was under pressure as it exited the NZX indexes, it should now benefit from funds that are weighted to include a set percentage of ASX100 stocks.
Xero [ASX:XRO] five-year price history.
Incoming chief executive Steve Vamos, who will be based in Sydney, will receive a base salary of $A900,000, a super contribution of $A50,000, a short-term incentive payment of up to 60% of his salary if he hits (unspecified) targets, and up to 70% of his base salary in long-term incentive targets.
Mr Vamos also plans to maintain his directorships at troubled Fletcher Building and Telstra, a point of contention for the Shareholders' Association.
In Xero's 2017 financial year, Rod Drury received total remuneration of $NZ731,000.
Mr Drury recently sold $94.5 million worth of Xero shares, taking his stake down to 12.8%.
RELATED VIDEO: Punakaiki Fund manager Lance Wiggs on Xero's future (Mar 5)
All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.