Here's what CEO Tim Reed makes out of the MYOB IPO

MYOB CEO Tim Reed. Image: Supplied.

Accounting services company MYOB announced its IPO today.

Working on an enterprise value of between $2.34 and $2.69 billion, or 14.5 to 16.8 times forecast EBITDA for the coming financial year.

The company is expecting to raise between $831.7 and $833.8 million, based on an indicative price range of $3.00 – $4.00 a share.

Company CEO Tim Reed has been at the company for 11 years and has been in the top job since 2008.

He will be paid a transaction bonus in connection with the IPO of between $700,000 and $900,000. Based on the mid point of the IPO, he will also receive about $2.7 million when he realises his redeemable preference shares and $2.1 million if he sells shares as part of the offer.

Reed is an existing shareholder and will hold 6,775,299 shares or about 1.14% of the company on completion. Based on the valuation his shareholding would be worth about $20 million.

Currently he earns a base salary of $800,000 a year and is entitled to a discretionary annual cash bonus of 75% of annual base salary, as determined by the board.

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