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.
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Comments and questions12
And we should be surprised by this inevitability because???
Bloody heck. What criteria did they have to meet at pay review time? The fact they were still standing and breathing?
What’s new here? It’s the same story of CEO's and the like getting pay rise after pay rise when the little man gets nothing. And they wonder why there is slow spending/retail growth.
Stale wages, meet inflation.
A healthy CEO payrise is fine if it's warranted. However, when one continues to blame the dollar every time any negative numbers are produced you've got to wonder. Despite that the company treasurer probably got a good payrise too.
Rakon Remuneration Committee members:
1. Brent Robinson
2. Darren Robinson
3. Blind Freddy
The perfect stock to short....it's only going down.
As a Rakon shareholder of 5+ years sitting on a 70% loss I this is bad. I have always struggled to see how a small manufacturing business with sales less than $200m pays its MD and Sales Manager such exorbitant salaries in the top 20 in NZ!.
Benefits of working for the family - all I can say is don't expect the shareholders to be so quiet in the next General Meeting as I for one have plenty to say
Not at all good, I enquired about buying products a week ago via their website & never got a reply. Not clever business.
One of the worst performing public company's in NZ. Blaming the $ is no excuse. The directors are ignoring their responsibility to shareholders one of whom I unfortunately are but not for long. No restraint is shown by these greedy directors.
I telephone the MD every time my Rakon shares tumble in value. Always the same story, just on the verge of something big. But this is never backed up by positive results. I was told a year ago their foreign hedging is 90% at US$0.77 for several years, so exchange rate excuses are just smoke & mirrors. Product fundamentals seem great, marketing strategy must be lacking.
@Anonymous 5:
1.Ask him how many specialists left the company.
2. Ask him if their products are 'copy-paste' style made.
3. Ask yourself is low value share price is preferable for the broders' buyability to increase their (lost) shareholders positions.
Shifting their business to China was the first step toward the end of this company.