Kiwi Property directors seek payrise to keep up with regulatory landscape, market expectations
Kiwi Property Group [NZX: KPG] directors will ask shareholders to approve a fee increase for the board at this month's annual meeting, which they say will cover increased demands on their time caused by new regulations and to keep pace with market expectations.
The proposal to raise the pool for directors' fees , to $720,000 from $665,000 will go to the July 29 annual meeting. The pool rose from $585,000 in 2014 when the property investor took on an additional independent director but didn't need shareholder approval because the amount paid to each board member stayed the same. Directors were paid a total of $615,000 in the year ended March 31, up from $552,000 a year earlier.
The proposal would lift chairman Mark Ford's fee by $5,000 to $155,000 and the other five directors would increase their fees by $10,000 to $90,000. Additional fees for chairing or being a part of a committee and a $50,000 discretionary pool would stay unchanged.
"Since the directors' fee pool was last reviewed in 2013, the regulatory landscape in which the company operates has changed, resulting in increased demand on directors' time and broadening their scope of responsibilities in monitoring and assessing legal and regulatory compliance," the notice said. "Furthermore, ensuring directors' fees are aligned with market expectations is important for the company to attract and retain the high calibre of directors required to support the company's strategy and objectives."
The pool was last reviewed in 2013 when Kiwi Property brought its management in-house and corporatised its structure, setting the total available for fees at $585,000, compared with $391,360 by the previous external manager.
Since then, the Financial Markets Conduct and Health and Safety at Work acts have come into effect, putting boards on notice about maintaining appropriate governance and ensuring workplace safety.
Kiwi Property shareholders will also vote on re-electing directors Jane Freeman and Mary Jane Daly at the upcoming meeting.
The shares fell 0.3% to $1.51, having gained 12% this year.