Sacked Melbourne chief executive Paul Guerra was paid a salary of $757,000 in his first season and was eligible to receive a $150,000 bonus for key performance indicators.
The eye-watering salary was revealed as part of Guerra’s statement of claim in Federal Court documents as he seeks compensation as part of an unfair dismissal claim against Melbourne.
Guerra was sacked only seven months into his role at the Demons and was handed a six-month payout as part of his contract.
But in sensational allegations lodged in court, Guerra alleges he was sacked after raising concerns about widespread underpayment of administration staff.
He also complained about the club using a consultancy firm linked to Dan Andrews as the club seeks to establish a home base at the Caulfield Racecourse.
Guerra’s salary is a key part of the claim given he came to the Demons from a role as the boss of the Victorian Chamber of Commerce.
If Guerra had lasted 12 months at the Demons chief executive, he would have been eligible to be paid $800,000 a season.
But the Demons sacked him as Demons president Steve Smith said upon his departure: “We just got this one wrong”.
In documents seen by the Herald Sun, the claim states: “Mr Guerra was entitled to a salary package that included his base salary, any incentive bonus package and superannuation,” according to court documents.
“Mr Guerra would be paid a base salary of $757,000 per annum for the first year… Mr Guerra was entitled to a $150,000 bonus during the first year of his employment comprising: an initial incentive bonus of $50,000 payable upon the Club being reasonably satisfied that he had commenced an agreed strategy development process…the implementation of measures expected to result in a bottom-line improvement of at least $500,000 on the prior year … incentive bonus payments of up to $100,000, based on “stretched key performance indicators.”
“Mr Guerra’s salary was to increase to $807,000 per annum effective from the second year of his employment.”
Melbourne have yet to file a defence to Guerra’s statement but provided to this masthead on Sunday: “The Melbourne Football Club stands by its decision to part ways with Paul Guerra due to a loss of confidence in his ability to lead the club. The club will make no further comment at this time.”
Guerra said in his statement of claims that he had raised the issue of underpayment of key staff with the AFL’s chief people officer Sarah Fair.
“Ms Fair said that the AFL knows there is a problem across the AFL of clubs applying incorrect awards and the engagement of contractors who may have been employees, and that other clubs were also looking into this issue,” the documents stated.