Diligent Board Member Services [NZX: DIL] will have a look at its executives' incentive schemes after a New York law firm raised a flag over some compensation plans.
The NZX-listed company's board has appointed a special committee to review the options and shares granted to some executives after it was questioned whether they had all been issued in "strict compliance with the relevant stock option and incentive plans," Diligent says in a statement.
"Should it be determined that options or shares have been issued otherwise than in strict accordance with the relevant plans, the board of Diligent will seek to rectify the position, as appropriate," it says.
The move comes after New York-based law firm Levi & Korsinsky LLP last month said it was investigating Diligent and its board "in connection with the compensation provided to certain of its executive officers."
The law firm asked Diligent shareholders to get in touch with partner Eduard Korsinsky, with a possible view to filing a class suit. Levi & Korsinsky specialises in class actions for shareholders and victims of corporate abuse, according to its website.
Diligent has been one of the market darlings this year, with the stock surging 183% this year to a record $5.46 a share on Friday.
The tech company's strength in the past two years hinged on it cashing in on the increasing popularity of Apple's iPad with its Boardbooks application.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Kirk Hope rumoured front-runner for top job at BusinessNZ, replacing O'Reilly
- Dimension Data restructures, top salesman leaves
- Bizarre gay dating app dispute reaches NZ courts
- Tech expert's complaint about 'snake oil' ad upheld
Most listened to
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories
- Trilogy International CEO Angela Buglass reviews another bumper result
- Eroad CEO Steven Newman talks about his company's revenue increase
- What do the latest terrorism attacks in Mali and Israel mean? Nathan Smith discusses the latest foreign affairs news
- NZ Windfarms departing director Michael Stiassny speaks out after board exit
- James Mayo talks about SOS Hydration's growth plans after Snowball offer
- Michael Wood on whether he would run in Mt Roskill
- SAFE's Abi Izzard quizzed over protest of a caged hen operation at Pukekohe