Chemeq overcomes filtration issue, reveals CEO's salary package

The recent installation of new equipment at antimicrobial specialist Chemeq's (ASX:CMQ) Rockingham manufacturing facility has overcome a filtration issue identified during commissioning of the plant.

When the plant was initially commissioned, the total output of polymeric antimicrobial produced at the plant was limited because the filtration step in the production of the active pharmaceutical ingredient did not operate as expected at a commercial scale.

A new unit, designed to increase the capacity of the filtration step in the production process, has been installed with production tests showing a 55 per cent increase in total capability from nameplate capacity.

In coming months, Chemeq will also install a further unit which should allow an even greater total process capacity at the plant.

CEO's salary package

Chemeq has also revealed its new CEO's salary package.

David Williams, who begins his role as Chemeq's CEO on Monday, will receive a base salary of AUD$400,000 per year plus a short-term performance based cash bonus of up to $100,000 per year.

In his first year, Williams will receive up to $60,000 of this cash bonus if Chemeq obtains Australian Pesticides and Veterinary Medicines Authority approval for the supply of its polymeric antimicrobial for pigs by April 30, 2006.

Williams will receive notice of the performance hurdles he needs to jump for the remaining $40,000 by August 24.

Williams will also obtain $100,000 in Chemeq shares when he starts on August 1, and a further $50,000 in shares on July 1, 2006 if Chemeq shares are trading at $2.40 or more for 30 ASX trading days prior to that date.

He will also pick up another $100,000 in shares on July 1, 2006. A further $50,000 in shares will be forthcoming on July 1, 2007, if Chemeq shares are trading at $1.60 or more for 30 ASX trading days.

Williams will not be able to trade in any of these shares for a period of two years from the date of issue.

Chemeq shares were trading at $1.31 at the time of writing.

William's remuneration package is subject to annual review and various termination clauses, and he is restricted from accepting a position with a Chemeq competitor for up to a year if his employment contract is terminated.