Metro Performance Glass pulls plans to increase pool for directors' fees
Metro Performance Glass will reduce annual non-executive directors' fees rather than seek a mandate to increase the available fee pool at Thursday's annual general meeting.
The company had sought approval to increase the total annual remuneration available to all non-executive directors by $36,000 per annum to $650,000. This increase was to provide headroom for additional fees should they be required. No changes were proposed to the current annual directors' fees for any director.
However, while proxy voting was "strongly" in favor of the resolution "the board has decided to withdraw it following recent feedback from a number of shareholders expressing their view that in light of the company's size, breadth of operations and performance, the existing fee pool should be adequate," chairman Sir John Goulter said in a statement to the stock exchange.
"The board acknowledges the diverging views and has elected to withdraw the resolution accordingly. The board will instead create headroom in the fee pool to cover any extra work as it occurs, by reducing the current annual fees for each of the non-executive directors, including the chairman," he said.
Metro Performance Glass delivered a $19.4 million net profit for the year to March 31, down from $21.3 million a year earlier, as it absorbed the costs of a major acquisition in the Australian market and the impact of declining building activity in Canterbury and a dip in Wellington activity after the Kaikoura earthquake last November.
The shares last traded at $1.37, having fallen 29 percent so far this year. MPG listed on the NZX at $1.70 per share in 2014.