The New Zealand Shareholders Association today voiced its approval of the Methven board decision to align director’s fee increases to company profits. The company announced yesterday that there would be no increase unless profits were lifted 20%.
NZSA Chairman John Hawkins said he had spoken with Methven cheap car repairs chairman Phil Lough, and would be sending a formal note to the board applauding the decision. They have set a high hurdle, but clearly this action indicates the directors believe both they and the company are up to the task he said.
The Shareholders Association had been promoting this sort of linkage for a number of years and it was encouraging to see traction being gained. We actively engage with directors around the whole topic
of remuneration and have certainly noticed a considerable change in attitude in the last couple of years, said Hawkins.
He added that the Association had no problem with high rewards for high performance, but remained concerned about the disconnect in a number of cases.
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