Diligent board to run ruler over executive incentive schemes
By Paul McBeth
Dec. 24 (BusinessDesk) - Diligent Board Member Services will have a look at its executives' incentive schemes after a New York law firm raised a flag over some compensation plans.
The NZX-listed company's board has appointed a special committee to review the options and shares granted to some executives after it was questioned whether they had all been issued in "strict compliance with the relevant stock option and incentive plans," Diligent said in a statement.
"Should it be determined that options or shares have been issued otherwise than in strict accordance with the relevant plans, the board of Diligent will seek to rectify the position, as appropriate," it said.
The move comes after New York-based law firm Levi & Korsinsky LLP last month said it was investigating Diligent and its board "in connection with the compensation provided to certain of its executive officers."
The law firm asked Diligent shareholders to get in touch with partner Eduard Korsinsky, with a possible view to filing a class suit. Levi & Korsinsky specialises in class actions for shareholders and victims of corporate abuse, according to its website.
Diligent has been one of the market darlings this year, with the stock surging 183 percent this year to a record $5.46 a share on Friday.
The tech company's strength in the past two years hinged on it cashing in on the increasing popularity of Apple Inc's iPad with its Boardbooks application.