By Campbell McIlroy
Friday 4th August 2000
|Text too small?|
Axa chief investment officer Barry Lindsay said the company was supportive of employee share schemes, if appropriately structured, and acknowledged the benefit to shareholders from the likely extra commitment of employees who were owners of the business as well.
But diluting existing shareholders' interests as a result of unnecessarily generous employee share issue terms was not something Axa and other institutions could support, he said.
Last Thursday proxy votes from institutions owning five million shares (approximately 7% of the shares on issue) voted against the resolution at Mainfreight's annual meeting.
In particular, Mr Lindsay said the company questioned the need to offer shares to employees at 30% discount, funded by interest-free loans.
The 2% of capital to be issued in this instance was on top of the 4.2% of the company's capital which had already been issued on favoured terms within the past five years.
Mr Lindsay said Axa had suggested to Mainfreight a smaller discount be applied to the proposed share issue.
No comments yet
NZ dollar benefits from dovish Fed, domestic growth
Fisher Funds backs Infratil's Vodafone play
Ballance partners with Hiringa for Kapuni hydrogen project
Kiwi Property eyes residential development for mixed-use centres
Strong construction growth shores up 1Q GDP but services weak
Sharesies to offer fractionalised NZX shares
20th June 2019 Morning Report
NZ dollar steady ahead of Fed decision, NZ GDP
Vital proceeds with $37m first stage of Wakefield Hospital redevelopment
Risks from exploration ban coming to pass