Robinsons got pay rise in year when Rakon shares tumbled
BUSINESSDESK: Rakon managing director Brent Robinson and marketing director Darren Robinson got pay rises last year even as the shares more than halved in value and the company continued its policy of not paying dividends.
Brent Robinson's remuneration rose 6.7% to $846,573 and Darren Robinson received an 8% increase to $691,800 in the year ended March 31, according to the annual report.
Shares of the Auckland-based company, which makes crystal oscillators used in navigation systems and smart phones, fell 4.6% to 42 cents on the NZX today.
Rakon tumbled to 50 cents on March 31 from $1.15 a year earlier and its market value has shrunk to the level where the company dropped out of the benchmark NZX 50 Index this month.
Rakon, founded by the Robinson family father Warren Robinson, was a market darling when it first listed in May 2006 and the shares peaked in May 2007 at $5.80.
The stock is rated "outperform" based on the consensus of five analysts compiled by Reuters.
Interests associated with the family have about 23% of the shares and a separate family company, Trident Investments, leases property to Rakon on commercial terms.
The company blamed the strength of the kiwi dollar for a 6% decline in 2012 sales as most of its revenue is in US dollars, and in that currency sales rose 4%.
Sales into telecommunications applications fell, reflecting a weaker economy in Europe and demand volatility in Japan after its earthquake, the company said.
Brent and Darren Robinson got pay increases of about 5% and 3.6% respectively in 2011.