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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news