Karl Redenbach (LiveTiles)
Publicly listed Microsoft partner LiveTiles has moved its founder and former CEO Karl Redenbach into a contractor position, removing almost $1 million in financial incentives.
Redenbach, who founded LiveTiles in 2014, has taken on a new role as head of global growth, reporting to the recently appointed CEO David Vander and working as an independent contractor.
According to an announcement on the Australian Securities Exchange (ASX), Redenbach will now receive remuneration of $110,000 per year for a contractor role of managing director and $867,160 annually for a new role as head of global growth.
Although LiveTiles claimed the amount was equivalent to his former base salary, the changeover represents a 50 per cent pay cut due to the loss of incentives or commissions.
“Redenbach has agreed to forego any previous entitlements that may have been available to him under his employment contract, including waiving his rights to his notice period and any bonuses or incentives,” LiveTiles told shareholders.
“Both parties have signed a Release Deed where Mr Redenbach waived any further claims, rights or entitlements other than those required by law. While Mr Redenbach has previously foregone his FY2022 bonus, the board (with Mr Redenbach absent and not voting) has retained the discretion to award Mr Redenbach such bonus in the event of a change of control and they deem it appropriate.”
LiveTiles added that Redenbach continues to be “committed to the company”.
LiveTiles has been under strain since the end of 2020 when it agreed to pay $8.445 million following a NSW Supreme Court case.
First emerging in 2018, the case concerned accusations that Redenbach and co-founder Peter Nguyen-Brown had breached their director’s duties by establishing separate businesses and diverting assets away to separate corporate entities.
Last year, the company announced it was undertaking a significant operational review, which would see it delisting from the ASX and moving “certain” jobs to Portugal and the Philippines.
Shortly after, the intelligent workplace software provider announced plans to cut 32 jobs, with co-CEO Nguyen-Brown exiting the company.
A month later, Redenbach also moved into an executive leadership post as former global growth director David Vander returned to LiveTiles as CEO.
Around the same time, LiveTiles received an offer from Bigtincan Holding to acquire it for $65 million. However, Bigtincan later withdrew the offer citing poor access to due diligence.
