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

 

NZSA pans Kathmandu's lack of disclosure on directors' fees

NZSA pans Kathmandu's lack of disclosure on directors' fee increase

By Jenny Ruth

Nov. 16 (BusinessDesk) - Outdoor clothing and equipment retailer Kathmandu Holdings’ proposal to hike its directors’ fee pool by 25 percent has drawn the ire of the New Zealand Shareholders’ Association.

Kathmandu’s board wants to increase the pool by A$200,000 to A$1 million. It isn’t the amount of increase that irks the association but the lack of disclosure about why the increase is necessary.

“We do not believe the board has provided the necessary information or made a fact-based case for an increase in the fee pool,” the association told members.

“The level of information provided is unacceptable in the modern era.”

Because of that, the association says it sees no alternative but to vote all the undirected proxies it is given against the resolution.

It’s certainly been a long time since Kathmandu’s directors last asked shareholders to raise the fees available to them – the last increase was approved seven years ago at the 2011 annual meeting when the pool rose from A$600,000 to the current A$800,000.

The association says there is no indication in the notice of meeting of the proposed individual fees for 2019 and nor is there an external report including company comparator information, even though the board says it reviews directors’ fees annually and seeks advice from independent remuneration consultants “as necessary.”

The notice of meeting says the increase “would allow the capacity to appoint other non-executive directors to the board as required and to ensure that the right mix of skills, experiences and diversity necessary for the proper functioning of the board is maintained.

“Also, this allows for succession planning by facilitating the appointment of a new non-executive director before the retirement of an existing non-executive director.”

The association also takes issue with the fact that Kathmandu provides no breakdown of how existing fees are paid to individual directors or whether they partly relate to board committee work.

However, it does propose to vote undirected proxies in favour of the other four resolutions, including the re-election of David Kirk as chairman and the grant of performance rights to managing director Xavier Simonet.

The association says the structure of Simonet’s performance rights align his interests with those of shareholders “and it is only fair that Mr Simonet should receive the performance incentives.”

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: