Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Diligent discloses staff share option blunder

Diligent discloses staff share option blunder

By Pam Graham

Jan. 18 (BusinessDesk) - Market darling Diligent Board Member Services is tidying up the way it grants share options to employees after finding it granted too many options to senior staff and did not provide a prospectus to others.

The company, whose board members include former NZX boss Mark Weldon, has embarrassingly had to advise NZX and the Financial Markets Authority of the breaches.

BusinessDesk understands that an investigation by a special committee of the board came about after the company was targeted by a US law firm, essentially a legal bounty hunter, looking for a fee for discovering the breaches.

Chairman David Liptak declined to comment on how the company first became aware of the issue but said it was working with authorities to resolve it.

Weldon is a member of the special committee and was not on the board when the breaches occurred.

The special committee has found that awards of stock options to chief executive Alessandro Sodi in 2009 and 2011, and a 2011 award to another employee exceeded caps in incentive plans operating at the time.

The options in excess of the caps will be cancelled and another way will be found to compensate the executives.

A number of smaller option grants to employees in New Zealand were also made in the absence of a prospectus and this "was not, or may not have been" in compliance with New Zealand regulations. The options were free.

The Financial Markets Authority (FMA) said it was working with the company to establish whether a breach occurred.

"The special committee determined that these instances of non-compliance were inadvertent," the company said.

Diligent is listed in New Zealand and its shares were down 0.9 percent at $5.50 in afternoon trading, having hit an all-time high of $5.61 earlier this week on strong annual revenue growth figures.

Because the company is incorporated in Delaware with over 500 shareholders, it is subject to the US reporting and regulatory requirements of the Securities and Exchange Commission (SEC) and the Securities Exchange Act of 1934.

The company said that it struggled with complex regulatory and compliance obligations in multiple jurisdictions with different rules during a period of financial difficulty and constrained resources in the years following the listing on the NZX in 2007.

"While the special committee's work continues, all regulatory issues identified will be fully self-reported to the NZX and FMA," the company said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news