Freightways, the courier and logistics firm, is proposing a 29% pay rise for its six directors, saying they haven’t had an increase since 2007 and in that time their workload has increased.
Shareholders will be asked to approve a $98,000 increase in the pool available for directors to $434,000 at their annual meeting on Oct. 27, according to a company statement today.
“This increase is based on independent advice that has considered market evidence, the increasing workloads and responsibilities of directors, and the fact that the directors have not received an increase in fees for four years,” the company said.
When the last increase was approved in 2007, it was envisaged that it would create enough funding for an additional director, who has since been appointed, the company said. The 2007 increase was also the first in four years.
Shares of Freightways have fallen 14% since the October 2007 annual meeting. They were last at $3.28. The shares are rated ‘outperform’ based on the consensus of seven recommendations compiled by Reuters, with a median price target of $3.39.