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

 


Xero board seeks 70% boost to fee pool at AGM

Xero board seeks 70% boost to fee pool at AGM

By Suze Metherell

July 2 (BusinessDesk) - Xero's board is seeking a 70 percent boost to its pool for directors' fees, having bolstered its governance team with former Microsoft chief financial officer Chris Liddell taking over the chair in February.

Shareholders will be asked to increase the total pool for Xero's eight directors to $850,000 from $500,000 at the company's July 23 annual meeting in Wellington, according to the notice of meeting. Of that, some $214,000 is expected to be unallocated, to give Xero scope to add another director if needed.

Xero spent $280,000 on directors' fee in the year ended March 31 of its $500,000 pool, up from $243,000 a year earlier. That doesn't include the $395,000 salary package for chief executive Rod Drury.

"The proposed increase in the non-executive remuneration cap will enhance the board's ability to attract and retain directors of the highest calibre to help drive Xero's continued success," the company said. "The increase in the remuneration cap also brings Xero's non-executive director remuneration into line with current rates, particularly those in offshore markets such as the US."

Xero last bumped up director fees in 2012, when it doubled the pool to $500,000, its first increase since listing in 2007. That increase was designed to pay for two foreign directors and give it scope for a third if necessary.

Since then, Liddell, California-based Bill Veghte and Sydney-based director Lee Hatton have been added to the board.

Shareholders will also be asked to vote on granting options and shares to Liddell and Veghte rather than cash for their annual directors' fees, which Xero's board set at $220,000 and $176,000 respectively.

"It has been a deliberate strategy to transition from a New Zealand-based company to be a more US-centric company as we expand globally," chief executive Rod Drury said in a letter to shareholders. The board needed "headroom to be able to remunerate our directors in line with US market expectations and be able to grant new directors sufficient equity in Xero to attract them to our business."

Other resolutions to be ratified are the election of Veghte and Liddell to the board, and the re-election of Sam Morgan and Graham Shaw.

Shares in Xero rose 1 percent to $26.01, having slumped from a record $45.99 in March.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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