The Shareholders Association is opposing a planned 50% increase in the amount of money available to pay Nuplex’s directors’ fees.
Chemicals maker Nuplex, whose corporate governance came under scrutiny following continuous disclosure issues in late 2008, is seeking to increase the total fee pool per annum from $1 million to $1.5 million.
The proposed increase would cover rising fees due to inflation as well as market trends in New Zealand and Australia over the next three to five years, the company said.
It would also allow for the appointment of additional directors “should that be decided” and provide for an overlap of directors upon retirement and replacement of directors in accord with the director succession plan.
However, Shareholders Association corporate liaison Des Hunt says the proposed increase is unnecessary.
“I told them I’d be disappointed if it was to increase their own fees,” Mr Hunt says.
“Also, under the company’s constitution I think they can appoint new directors in any case without raising the fees and then have it ratified at the next AGM ... one could question why they need an extra 500K.
“Our policy is that for increase of directors fees or CEO remuneration, we would expect to see very much company performance going up and some of that benefit being spread amongst employees and shareholders first and foremost.
"We think they’ve been in the trough long enough.”
Nuplex sharehodlers will vote on the proposal at their annual meeting on November 2.
Duncan Bridgeman
Mon, 17 Oct 2011
Mon, 17 Oct 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Nuplex directors put on notice
17511