YBR performance pay a mystery

Struggling mortgage broking and financial advice business Yellow Brick Road is still negotiating performance pay arrangements for its new chief executive, Frank Ganis.

In a filing to the ASX on Monday, the company revealed that it had not yet reached agreement with Ganis on the short and long-term incentives he would be eligible to receive as the new chief executive.

Ganis, the former head of Macquarie Group's retail banking and mortgages business, was appointed to the top job at YBR almost three weeks ago - a few days after the company released notice papers for the annual meeting of shareholders to be held on 23 November.

Given that Ganis and the board have yet to reach agreement on performance pay, it is extremely unlikely that shareholders will get an opportunity to examine his share-based remuneration arrangements until the 2019 annual meeting.

That might draw some heat from agitated YBR shareholders, who have seen the company's stock price slide from a peak of 77 cents in 2014 to a near-record low of 9.3 cents on Monday.

While shareholders might be left to speculate about Ganis' incentives for some time, the company yesterday revealed the "material terms" of his employment contract.

Ganis has signed a two-year deal with YBR and is in line to receive annual base salary and superannuation worth A$569,400.

He has also received sign-on equity to the value of $100,000.

Regulatory risks are weighing heavily on the share prices of ASX-listed mortgage broking operations such as YBR and Mortgage Choice.

Uncertainty surrounding the future of broker commissions has raised concerns that the business cases of these companies may not be sustainable.