Ardent Leisure's new chief executive Simon Kelly will receive $1.5 million in shares as a sign-on bonus to replace Deborah Thomas at the helm at the beleaguered group that is still recovering from the financial impact of the Dreamworld tragedy.
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The company revealed yesterday Ms Thomas, who was appointed CEO in 2015, had stepped back into a senior executive position after a horror year.
Long-time chief financial officer Richard Johnson will leave the company in July.
A spokeswoman for Ardent confirmed Ms Thomas would not take an immediate pay cut.
"Annual salary reviews are by the remuneration committee every August and as a director, Deborah's package will be reported and agreed as per ASX rules," the spokeswoman said.
The company also rejected suggestions the appointment of Mr Kelly, a former Nine Entertainment executive, was because Ms Thomas was never suited to the role.
"Deborah was the best-credentialled person to take over as CEO in 2015, to reorientate the group as a customer-centric entertainment company," the spokeswoman said, noting Ms Thomas was a director before her appointment.
"There is no doubt that Deborah was CEO during a very challenging period for the group and it was in no small measure that her considerable people management skills got us through a difficult period," the spokeswoman added.
The change also comes as the investment group led by Gary Weiss and David Baffsky, Ariadne, lifted its stake in Ardent to 7.88 per cent.
Ardent chairman George Venardos said Mr Kelly brought a wealth of experience to Ardent.
"Following a comprehensive review of the business, the board has adopted a new management structure, that we believe will deliver the best outcome for shareholders as Ardent Leisure transforms into Main Event Entertainment Group," Mr Venardos said.
Mr Kelly's remuneration package for 2017, if including the $1.5 million share bonus, will be around $3 million.
He will be restricted from selling the shares until 2020 but will be able to keep the shares as long as he remains in his position for a period of six months.
He will begin the new role in July.
Ardent has been struggling since four people died on Dreamworld's Thunder River Rapids ride on October 25.
Ms Thomas' remuneration package became a focus of community outrage after the tragedy.
She later donated her cash bonus of about $165,000 for 2016 to charity.
Ms Thomas received total remuneration, including superannuation, of $811,000 for 2016, including a base salary of $670,000.
Sources said it was a matter of time that Ms Thomas stepped back from the top job, adding that her new role as chief operating officer and chief customer officer was a much better fit for her background.
An analyst who declined to be named said it was "no surprise". "Her appointment was always controversial," the analyst said, before noting that Ms Thomas did do a good job on selling Ardent's marina assets and Goodlife Health Clubs.
The company reported a 2.5 per cent fall in constant centre revenues during the third quarter on April 11, while revenues from the company's theme parks business were down 34.3 per cent.
