DNZ's Duffy gets second bonus in two months

Friday 15th October 2010 3 Comments

DNZ Property Fund chief executive Paul Duffy has landed his second bonus in as many months, after the property investor's stock met a performance target.

Duffy received 1 million shares today after the stock held above $1.17 for five trading days. The latest bonus brings his total bonus shares to 1.7 million, worth $2.1 million at today's share price.

The bonus adds to the $17.5 million he gained at the time of DNZ's listing last month, comprising $12.5 million in cash and $5 million in DNZ shares at the issue price.

Investors have been attracted to DNZ because of its internal management contract, which makes it an attractive proposition compared to its peers. DNZ had to abort its first attempt to list on the stock exchange after activist shareholders led by NZ Funds blocked the proposed buy-out of the management contract with Duffy and Alastair Hassell.

Shareholders eventually agreed to a deal that gave Duffy and Hassell $35 million in cash and shares.

DNZ shares rose 0.8% to $1.22 in trading today, and have jumped 21% since they listed in August.

Duffy, who commands a salary of $650,000, stands to gain access to another million shares if the price holds above $1.27 a share over a five-day period in the next three years.

Businesswire.co.nz

Comments from our readers

On 18 October 2010 at 11:08 am Peter Browne said:

It's great to see the decision of DNZ's independent directors to rationalise the management structure of the company has paid off in enabling shares to be freely traded on the open market. That trading is gradually reducing the discount to the NTA value, whatever that now is. Gains on new shares will have helped to lower overall losses from investments in the original Dominium Funds companies. I trust the company will continue to reduce its debt-equity ratio to a prudent level since that will further increase the share price.

On 4 November 2010 at 12:51 pm Jack said:

I am disappointed with the directors, that they did not set a more meaningful incentive target for Paul Duffy, such as a Profit Measure. Efficient management they have got, but we need to see good value and assets working well. The Directors need to improve their management bigtime !!!!

On 17 December 2010 at 4:08 pm Peter Fitzgibbon said:

Don't you feel for the investors. First the share"consolidation" (your fewer shares will still have the same value) where in actual fact the value was reduced by 40%, last financial year DNZ was putting a value of $2.11 per share, listed at $0.97 and Duffy coins it by being set low targets to achieve.