Sharechat Logo

Contact Energy changes directors' shareholding rules

Wednesday 19th October 2011

Text too small?

Directors of Contact Energy will become shareholders in the company through a less complex scheme, the chairman, Grant King, told shareholders at the company’s annual meeting today, in Rotorua.

“The board firmly believes that directors should own shares in Contact on their own account to help align interests with shareholders but we found our existing director share scheme cumbersome and costly to operate,” he said.

“Recently we have adopted a new board policy that requires directors to hold at least 20,000 shares in Contact within three years of appointment, rather than take a proportion of their fees in shares via a three-year trust arrangement,” he said.

The policy was similar to the approach followed by companies such as Telecom, Fletcher Building and Fisher & Paykel Healthcare, and consistent with the NZX’s Corporate Governance Best Practice Code, King said.

The company recapped events of the last year, including commissioning the Ahuroa gas storage unit and new peaker plant at Stratford, and its progress on new geothermal generation, but gave no guidance on earnings.

Shares of Contact rose 1.4 percent to $5.71 and have declined 6.6 percent this year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

UPDATE Contact increases dividend as FY earnings rise; quits wind projects
Contact increases dividend as FY earnings rise in competitive market
Contact shares drop to 2-month low, says 'hard to see' investment under Labour-Greens plan
Contact Energy, parent Origin mull redemption of $2.03 bln of notes after S and P change
Solid first half for Contact, despite retail margins squeeze
Contact sells mothballed New Plymouth power station for $24 mln
Contact Energy's King hints at greater returns as cash mounts
Contact energy beats FY profit forecast as revenue surges
Elliott leaving Contact for Origin role
Contact sees 2014 cash-flow boost as projects put on ice