The resources boom has swelled the job books for many of the country’s engineering firms, which in turn has lifted company profits and share prices and lined the pockets of some of the industry’s long-serving executives.
GRD Ltd founder Brettney Fogarty, Perth-based WorleyParsons Ltd managing director Peter Meurs and Monadelphous chairman John Rubino chose to materialise some of their hefty paper profit last year, selling shares collectively worth more than $150 million.
Heading the list was Mr Fogarty, who has reduced his shareholding in GRD from 30.4 per cent to 10.7 per cent, netting $73.8 million in two separate transactions.
Meanwhile, in February 2006, Mr Rubino pocketed $22.8 million from the sale of four million shares at $5.70.
But what a difference 12 months can make.
Last month, Monadelphous Ltd shares traded around the $11.50 mark; if Mr Rubino had held off selling he would have more than doubled his money.
Mr Rubino still owns four million shares worth $43 million.
Mr Meurs could also have pocketed substantially more cash from the sale of 3.3 million shares last month had it not been for the ‘collar and cap’ structure of his share loan.
He sold stock for between $12.83 and $21.10 for $57.6 million after contracts allowing him to borrow against the stock matured.
Had Mr Meurs sold the shares at market price – $27.50 – he would have pocketed an extra $9.2 million.
