Departing Smartpay chairman Hammerschlag keeps shares, options

Ivan Hammerschlag, who stood down as chairman of Smartpay [NZX: SPY] on Tuesday, will keep his shareholding in the listed payment terminal supplier and his entitlement to stock options that would more than double his stake.

The company announced yesterday that Mr Hammerschlag, appointed in 2012 for his experience in retailing and network of Australian investors, would step down immediately and be replaced by board member Greg Barclay.

"It was really a question of what was best timing for the company," Mr Barclay told BusinessDesk. "He's worked with the board and the company to step aside at what we all agreed was the right and easiest time for both of us. 

Probably the next juncture for him was post the full-year announcement, so he was keen to finish before the end of the calendar year due to his commitments in Australia."

Mr Hammerschlag is executive chairman of ASX-listed RCG Corp, a retail group whose assets include the Athlete's Foot sports shoe chain. RCG had expanded and was now taking up more of Mr Hammerschlag's time, Mr Barclay said.

At the time of his appointment to the board, Mr Hammerschlag committed what the company described as a "substantial personal equity investment" in Smartpay. He will retain his stake of 1.75%, or three million shares.

Mr Hammerschlag will also retain his remaining unexpired investment stock options. When appointed, he was granted two million at 20c per share, exercisable until March 31, 2017, and two million at 30c per share, exercisable until March 31, 2018, although they are above the current share price of 15c.

Smartpay shares have fallen 25% this year. Last month, the company reported a 90% slump in first-half profit and said it is in the process of rebuilding its business after losing a major wholesale contract last year.

When Mr Hammerschlag was appointed chairman, managing director Bradley Gerdis said having "the skills and profile of a leading Australian retailer on our board will. no doubt, be a real asset to the company going forward."

Mr Barclay said that Mr Hammerschlag had been "very forthcoming about helping with introductions" to key Australian connections. "We've got a few institutional shareholders based in Australia who he knows reasonably well, so I'm teed up to go across there in the next week or so to do handover with Ivan and meet some of the brokers that he works with out of Sydney as well." 

(BusinessDesk)

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