F&P win raises questions about awards

Friday 30th November 2001

Manufacturer Fisher & Paykel Industries, at the centre of a storm of criticism over its share split, was the controversial choice for a top award at the Deloitte-Management magazine Top 200 awards last night.

F&P received the SAP Best corporate strategy award for "its ability to deliver value to shareholders and realise the value embedded in the organisation."

Some fund managers have complained that F&P ripped off local shareholders by flogging off its healthcare shares on the US market too cheaply.

The F&P Healthcare American Depositary Shares were sold to US institutions at $US18 per share and after listing on November 14 instantly shot up in value. At presstime this week they were trading at $US29.80 - seen by fund managers as a sign of a massive value transfer from Australasian investors to US ones.

But the judges, NZSE managing director Bill Foster, career director Alison Paterson and corporate risk adviser Roger Kerr, chose F&P for the award over takeover target Frucor Beverages and the Port of Tauranga, the two other finalists.

Manager of the Top 200 awards, Susan Peach, said the judges made their decision on F&P's performance in the year to its balance date, which was March 31, so it did not take account of the share split.

The judges said F&P's strategy to add value by "professionally managing, developing, encouraging and rewarding the people it employs" kept the long established business at the cutting edge of world class product design, engineering and technological innovation.

F&P chairman Colin Maiden was also named QBE Insurance Chairman of the Year.

Meanwhile, highly profitable entertainment company Sky City Entertainment Group won the top award, Company of the Year 2001. It took the top award above finalists Hallenstein Glasson Holdings and Michael Hill International.

Last year Sky City chief executive Evan Davies was named chief executive of the year.

This year that award went to Baycorp managing director Keith McLaughlin - the finalists were John Loughlin of Richmond and Craig Norgate of Fonterra. Last year credit agency and technology company Baycorp won the best corporate strategy award.

The other winners were:

Genesis Corporation - Deloitte Emerging Enterprise Award
Methanex - Brookfields Business Ethics Award
Peter Jackson, filmmaker - Designworks Visionary Leader award
Richard Templer, team manager, Industrial Research - NZIM Young Executive of the Year.

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