Share plan for top Pyne Gould staff

Tuesday 25th January 2011 6 Comments

A share plan created by Pyne Gould Corp for key executives and senior managers acknowledges recent efforts including creating Building Society Holdings (BSH).

The scheme would have an impact on net profit after tax in financial year 2011 of $1.7 million, of which $1.4 million would be for Pyne Gould and $300,000 for BSH, with a $100,000 impact in 2012 for BSH, Pyne Gould said today.

Earlier this month, the legal merger of CBS Canterbury, Southern Cross Building Society and Pyne Gould subsidiary Marac was completed with the allotment of shares in holding company BSH.

Former CBS Canterbury shareholders received 13.04% of BSH, with former Southern Cross shareholders having 14.75%. The remaining 72.21% was held by Pyne Gould.

Under the share plan announced today, up to 4.4m new shares would be issued at 36.74c, being the volume weighted average price five days prior to the shares being granted, Pyne Gould said.

Half the shares would immediately be issued to eligible employees.

The rest would be put into escrow until October 1 when, provided the employee remained employed by the BSH group at that date, those shares would be released to the employee in three tranches over three months.

BSH chairman Bruce Irvine said the share plan rewarded senior management for their vision in creating a financial services group capable of meeting the financial needs of small to medium enterprises and individuals nationwide. It also provided an incentive for them to be part of its future development and growth.

NZPA

Comments from our readers

On 25 January 2011 at 8:51 pm arty said:

Thankyou for the opportunity to comment.No rewards here for the long suffering shareholders. The people in this play are being paid already quite well to get this merger process completed. Would it not be prudent to get the ship on an even keel and producing good profits before handing out bonus payments, by way of extra shares, diluting value of exisiting shareholder supporters even further? The PGC shareholders are the ones that stumped up with the cash in the capital raising process to save the company. The reward, the lowest share price ever. Last year the profit was compromised due to a lending manager screwing up under the noses of the upper management. What will it be next year?

On 26 January 2011 at 7:33 am vernon rainey said:

Where do the PGC shareholders fit into the scheme of things. No mention there .

On 26 January 2011 at 10:36 am Sam said:

Couldn't agree more with the comment about righting the ship before dolling out the rewards. So they completed a merger - big deal! What is to stop these employees cashing in their shares as soon as they receive them thereby negating the whole point of this exercise - to incentivise them. The company should have issued long dated options to motivate its senior staff over the long term (which should lapse if they chose to leave the company). This appears to have been quite a brainless move by management and doesn't augur well at all.

On 27 January 2011 at 9:27 pm Maree said:

Long-suffering is right. It borders on immoral really.

On 28 January 2011 at 10:42 am Rob said:

Couldnt agree more with the above comments. I have held PGC shares for over 2 years now but still no return on that investment as yet. To rub salt in our wounds, not only have I not made a return on it; the share price is at its all time low. Disgraceful!

On 1 February 2011 at 4:40 pm BTW said:

...and govt/industry experts and consultants wonder why people keep investing in property instead of the capital markets!