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

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: