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

 


Summerset seeks to boost directors’ fee pool by 50%

Summerset seeks to boost directors’ fee pool by 50% as board gets rejig

By Paul McBeth

March 25 (BusinessDesk) - Summerset Group, the retirement village operator and developer, will ask shareholders for a 50 percent bump in the directors’ fee pool to account for a rejigged board, having delivered a 153 percent boost in the company’s stock price since it listed in 2011.

The Wellington-based company wants to lift the pool for directors’ fees to $600,000 from $400,000, which it says will compensate the directors who replaced representatives of former cornerstone shareholder Quadrant Private Equity, and chief executive’s Norah Barlow’s transition out of management next month. The higher fee pool would allow Summerset add another director.

“This increase in the fee pool is primarily necessary due to changes in the composition and size of the board,” the company said in its notice of annual meeting. “Based on recent research the proposed fees are in line with the fees paid to directors of comparable sized listed companies in New Zealand and below those of comparable sized companies in Australia.”

The $400,000 fee pool was set in November 2011 when Quadrant sold down its stake and listed the company on the NZX. Quadrant’s representatives on the board had taken lower fees than other non-executive directors, while Barlow didn’t receive director fees as managing director.

Quadrant sold the shares at $1.40 in the initial public offer, and the stock has soared 153 percent since then to $3.53, while paying dividends of 5.75 cents per share. Over the same time, the benchmark NZX 50 index gained 53 percent.

Summerset’s new fee structure would lift the chairman’s fee by $15,000 to $165,000, non-executive directors’ fees by $5,000 to $80,000, and raise the additional fee for chairing the audit committee by $5,000 to $15,000. The bigger pool would also cover a $7,500 fee for the chair of the remuneration committee.

Shareholders will also be asked to amend the company’s constitution to incorporate ASX listing rules to comply with its Australian dual-listing.

The annual meeting will be held in Wellington on April 30.

Last month the company reported annual profit more than doubled to a record $34 million in calendar 2013, as sales of occupation rights to its retirement units reached an all-time high.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

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

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news