Summerset Group, the retirement village operator and developer, will ask shareholders for a 50 per cent bump in the directors’ fee pool.
It wants to lift the pool for directors’ fees to $NZ600,000 ($A566,839) from $NZ400,000, which it says will compensate the directors who replaced representatives of former cornerstone shareholder Quadrant Private Equity, and chief executive’s Norah Barlow’s transition out of management next month.
The higher fee pool would also enable Summerset to add another director, it says.
“This increase in the fee pool is primarily necessary due to changes in the composition and size of the board,” the Wellington-based company said in its notice of annual meeting.
“Based on recent research, the proposed fees are in line with the fees paid to directors of comparable-sized listed companies in New Zealand and below those of comparable-sized companies in Australia.”
The $NZ400,000 fee pool was set in November 2011 when the company was listed the company on the NZX.
Shares were sold for $NZ1.40 in the initial public offer, and the stock has soared 153 per cent since then to $NZ3.53.
Summerset’s new fee structure would lift the chairman’s fee by $NZ15,000 to $NZ165,000, non-executive directors’ fees by $NZ5,000 to $NZ80,000, and raise the additional fee for chairing the audit committee by $NZ5,000 to $NZ15,000. The bigger pool would also cover a $NZ7,500 fee for the chair of the remuneration committee.
Shareholders will also be asked to amend the company’s constitution to incorporate ASX listing rules to comply with its Australian dual-listing.
The annual meeting will be held in Wellington on April 30.
Last month, the company reported that annual profit more than doubled to a record $NZ34 million in calendar 2013, as sales of occupation rights to its retirement units reached an all-time high.