DNZ boss collects first bonus less than month since listing

Friday 17th September 2010 1 Comment

Less than a month since listing on the NZX, DNZ Property Fund chief executive Paul Duffy has landed his first bonus: options for bonus shares worth $756,000 at today’s share price.

DNZ chairman Tim Storey confirmed to BusinessDesk today that Duffy had become eligible for the first 700,000 of 2.7 million options which he can choose to exercise, if the DNZ share price hits certain benchmarks over the next three years.

The early bonus is added 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.

At today’s share price of $1.08, Duffy’s first tranche of options would yield him further shares worth $756,000 at no cost, and take his holding in DNZ from 3% to 3.3%, if and when he exercises the options.

Investors have got in behind the property manager since listing on the NZX last month, lifting the stock 11 cents from its offer price to $1.08.

Duffy needed the shares to trade equal to or greater than 10 cents above the offer price to achieve his first milestone.

DNZ raised $45 million to fund the $35 million buy-out the property company’s old management contract with Duffy and Alastair Hassell.

“The markets are happy with our governance, and Paul is highly regarded – the share price demonstrates that because there’s demand,” chairman Tim Storey told BusinessDesk.

“Institutions have had a good look at us and are comfortable” with what they see, he said.

The stock was unchanged in trading today and, at $1.08 a share, sits above 70 on the relative strength index, or RSI, a level some technical analysts say means a security is poised to fall.

DNZ had tried to float last year, but was blocked by activist shareholders led by MMG Advisory, which has now been fully acquired by NZ Funds.

Duffy, who commands a salary of $650,000, stands to gain access to another million shares if the price holds above $1.17 a share over a five-day period in the next three years, with his ultimate end-game looking for $1.27 a share in same period.

Businesswire.co.nz

Comments from our readers

On 20 September 2010 at 12:55 pm g murphy said:

gee, there only one month. already in the money or will be, we can see where ones heart lies. where do i sign up.