Simple decision for Air New Zealand

Friday, October 5 2001 Stephen Franks Press Releases -- Commerce

The new Air New Zealand Board should announce an easy decision immediately. It is that retiring directors will be offered no retirement bonuses or allowances, ACT Commerce Spokesman Stephen Franks said.

"Today's Herald reports that the Board will be deciding on retirement payments for exiting Board members. They should start to rebuild confidence that the company will have a culture that demands and rewards performance, not status, by dealing with that issue straight away.

"If directors have hides thick enough to claim an entitlement to retirement payments behind closed doors then let's have it out in the open by letting them sue for it. New Zealand taxpayers are now paying. Let us know who would have the nerve. I hope none would even have the gall to accept such payment if it was offered let along sue for it.

"Some of these directors may have fought a good fight for the business, and even disagreed with the disastrous decisions - that's tough. Boards are judged collectively when we aren't told who is responsible for things going so wrong.

"In context this may seem petty, but restoring the right culture is at the heart of returning Air New Zealand to the right flight path. Most boards I respect don't take retirement benefits anyway," Stephen Franks.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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