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
PGW Guidance Update
CNU - Commerce Commission releases draft expenditure decision
Spark announces departure of Product Director
TGG - T&G appoints new Director
April 18th Morning Report
SKC - APPOINTMENT OF CHIEF EXECUTIVE OFFICER
Devon Funds Morning Note - 17 April 2024
Consultation opens on a digital currency for New Zealand
TWL - TradeWindow's $2.2 million capital raise now unconditional
April 17th Morning Report