Rakon board seeks fees rise to cover new director
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BUSINESSDESK: Rakon, the communications components maker which dropped out of the NZX 50 index last month, will ask shareholders to lift its pool for directors' fees to cover the latest addition to the board.
The Auckland-based company wants to increase the maximum aggregate amount of fees to $360,000 from the current $300,000, and will put the motion to shareholders at its September 7 meeting in Auckland.
Chairman Bryan Mogridge told BusinessDesk the increase will be used to cover the May appointment of Peter Springford as an independent director.
Mr Springford, a former chief executive of Carter Holt Harvey, will also be up for re-election at the annual meeting.
He was invited to join Rakon's board because of his business experience in China, which it hopes to draw on as it boosts its footprint in Asia.
The board hasn't increased its fee pool since 2007, when shareholders approved lifting it $60,000 to the current $300,000 level. That was done to retain directors and set their pay at a level appropriate to market prices.
The increase comes as Rakon top executives Brent Robinson and Darren Robinson face a pay cut in the 2013 financial year as the variable component of their remuneration kicks in after profits in the latest financial year.
They each got a pay rise, thanks to the stronger result a year earlier.
Rakon's shares climbed 6.7% to 48 cents in trading today, and have more than halved over the past 12 months.
The stock is rated an average "outperform", according to a consensus of five analysts compiled by Reuters, with a median target price of 66 cents.