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
- Reserve Bank confirms Kiwibank convertible bonds don't meet capital adequacy rules
- NZ dollar holds near highest in almost 4 months vs Aussie as parity talk re-appears
- Absence of inquiry concerns Orion Heath investors
- MARKET CLOSE: NZ stocks down, Orion falls while Mainfreight gains on record profit
- Youth big winners in Greens' final list
Most listened to
- "All options are open with private equity," says MediaWorks chief executive Michael Anderson
- Orion chief executive Ian McCrae on his company's full-year result and the year ahead
- Mainfreight chief executive Don Braid on the company's outlook and global reach
- The Green Party has revealed its final list and co-leader James Shaw is upbeat about the party's new look
- Steven Newman talks through Eroad's US progress
- NBR Radio: best of the week ended May 26, with Grant Walker