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

 


Diligent mulls report on executive options

Diligent mulls report on executive options, seeks extension of trading halt

Feb. 21 (BusinessDesk) – Diligent Board Member Services, whose shares have more than doubled in the past 12 months, says it is studying a report into stock options granted to chief executive Alessandro Sodi and other employees though it isn’t yet clear if the company needs to restate earnings.

The company, whose Diligent Boardbooks software helps directors to manage corporate governance information flows, had its stock halted this week pending receipt of the report from an accounting firm. Diligent set up a special committee in December after being notified that some options and shares granted to executives may not have complied with the relevant incentive plans.

“The report does not make clear recommendations as to any adjustments to be made,” the company said.

Rather, it “raises complex accounting issues for consideration as to how previous years and the current year’s accounts may be affected by Diligent having issued options in excess of caps in the plans to employees and cancelling those options,” it said.

The company is working through the detail with its advisers and auditors and sought an extension on the trading halt of its shares in the meantime. To avoid a repeat of such issues, it is bolstering its compliance team, it said.

Last month Diligent said the committee had found that a 2009 award to Sodi exceeded the cap in the 2007 Plan by 1.6 million shares and a 2011 award exceeded the cap in the 2010 Plan by 2.5 million shares. A 2011 award to another executive exceeded the cap in the 2010 Plan by 250,000 shares.

The committee also identified a number of instances where Diligent may not have been in compliance with New Zealand regulations such as granting stock options to employees in the absence of a prospective.

Today the company said it is working to develop alternative compensation packages. The award of options had been deemed as reasonable compensation at the time and the board “does not wish to see highly performing employees such as Mr Sodi penalised as a result of technical non-compliance by Diligent in implementing the plans,” it said.

Shares of Diligent last traded at $5.35 on the NZX, valuing the company at $448 million. The stock traded at just 7 cents in March 2009.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news