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


Simplicity Calls For Change To Air New Zealand Executive Pay Scheme

Simplicity, New Zealand’s nonprofit KiwiSaver scheme, has written to the Air New Zealand Board regarding its executive compensation scheme, asking for it to be redesigned to better serve KiwiSaver shareholders.

The Air New Zealand Board recently announced that 5,800,000 shares options would be issued to executives, including approximately 1,300,000 shares for the CEO, under its ‘Long Term Incentive Plan’. The rights vest after three years, with performance hurdles linked to share price.

“This is not a long term incentive, or at all appropriate in troubled times,” said Simplicity Managing Director Sam Stubbs.

Mr Stubbs has called for the plan to be suspended until it is redesigned for shareholders benefit. Millions of New Zealanders are shareholders of Air New Zealand via their KiwiSaver Schemes.

“These incentives are being paid for by KiwiSaver members. They’re too short term, and are

unlikely to drive better management decisions,” he said.

Simplicity also questioned the judgement of the Air New Zealand Board, calling the granting of options out of touch with reality.

“For the Board to think that it’s okay to issue millions of share options to management, just after staff redundancies and a $900 million lifeline from the Government, raises serious questions about governance,” said Mr Stubbs.

“What were they thinking? For an iconic Kiwi company, this was a very un-Kiwi thing to do,” he said. “It is simply not fair to stakeholders, including staff and KiwiSaver shareholders, in these difficult times.”

“Leaders eat last,” he said.

Simplicity manages $2.3 billion of behalf of 50,000 KiwiSaver and Investment Fund members.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>