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

 

Proposed pay for new director is pay before performance

Rubicon's proposed pay for new director is pay before performance: NZSA

By Jenny Ruth

Sept. 5 (BusinessDesk) - At the same time as warning shareholders not to hold their breath waiting for a dividend from Rubicon, the New Zealand Shareholders’ Association is signalling it is reserving judgement on its newly appointed director, George Adams.

But NZSA is definite that it won’t be supporting Adams’ proposed $137,127 a year pay package, saying it is excessive for a company with a market capitalisation of only $89 million, is not profitable, does not pay dividends and “has been a serial destroyer of shareholder value.”

NZSA says Rubicon has been a disappointment to shareholders ever since it was spun out of Fletcher Challenge as a separate company in 2001.

“To the best of our knowledge, the company has never paid a dividend and the share price currently trades around all-time lows,” the retail shareholders’ organisation says.

Rubicon’s sole remaining asset is ArborGen, the world’s largest provider of tree seedlings to the global commercial forestry industry and currently produces more than 350 million seedlings a year.

“Despite Rubicon’s long history of underperformance, the company believes it can now capitalise on ArborGen’s position in the market,” NZSA says in advice to members on how it will vote the proxies it holds.

“Unsurprisingly, given past performance, the chair was reluctant to give any firm guidance in the annual report,” it says.

NZSA notes the balance sheet has total assets of US$194 million and shareholders’ equity of US$147.6 million with intellectual property valued at US$105.6 million and net debt of US$25.8 million.

“The company has so far been unable to generate sustainable profits. Shareholders should not hold their breath waiting for a dividend.”

Adams was appointed to the board last month with chair Dave Knott saying: “we believe he will add considerable value to our decision-making as we move forward.”

The New Zealand-based Adams was previously managing director of Coca-Cola Amatil in New Zealand and finance director of British Telecom Northern Ireland. He is also a director of Tegel Group, deputy chair of Cavalier and on the boards of a number of other companies.

“Mr Adams’ previous roles suggest that he is a highly capable individual,” NZSA says.

“However, we would have liked to have seen a director nominated with forestry and/or timber products experience. There should be no shortage of suitable New Zealand-based candidates with this type of experience,” it says.

“Subject to the company’s responses as to our concerns at the ASM, we will vote in favour of this resolution” to confirm Adams’ appointment.

The notice of meeting says Rubicon wants to pay Adams $150,000 in shares which will be held by a trustee and will only vest in three annual tranches if a number of conditions are met, including that he remain on the board.

Adams will also be paid up to $74,627 a year in cash. “When combined with an independent director’s current base cash remuneration of $62,500 per annum, this equates to a total pre-tax annual remuneration of up to $137,127,” the notice says.

That’s before any changes in the market value of the shares.

NZSA reminds shareholders that it opposed last year’s proposal to increase the directors’ fee pool to $800,000 – the company said “over 97 percent” of the shares voted last year supported that resolution.

“Our view on the fee pool and the share offer has not changed,” NZSA says. Giving Adams such a package “represents pay BEFORE performance.”

Rubicon shares are trading at 18 cents and have fallen more than 33 percent in the last 12 months during which time the benchmark S&P/NZX 50 Index has gained nearly 20 percent.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>

ALSO:

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:



Auckland Airport: Thousands Of Kiwis Travelling For Queen’s Birthday Weekend


Confidence in domestic travel is beginning to steadily ramp up, with thousands of Kiwis travelling within New Zealand for Queen’s Birthday.
Nearly 400 flights will be operating to and from Auckland Airport over the long weekend... More>>

ALSO:

Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO: