Forum Archive Index - October 2000

[Brian Gale <brigale@i4free.co.nz>]

I do understand what you are saying Warner - the general scenario of
executive remuneration in NZ
is a mess, however I read a ray of hope in a statement from the Otago
University research:-

Ex the Dominion report ' Paying top dollar '

" Since companies were forced to disclose executive pay, the
associated public scrutiny appears to have encouraged many
companies to reform remuneration structures to more accurately
reflect performance, the Otago University report says."

It would be interesting to know which are the many companies
  Presumably the report will be available in the Public
Domain.  Maybe one of our Otago U. Chatters can help ?

I don't want to belabor the point but hopefully WRI might be one of them,
I repeat the previous extract from their annual report with the
significant words highlighted.

" For this reason, the remuneration of senior executives include
a significant incentive component, comprising a cash payment and a right
to acquire equity securities in the Company.  Entitlements under
both elements of the incentive component are measured against
prescribed performance hurdles."

This led me to believe that in this instance the Company were
making an effort to relate remuneration to performance. As I read it, if
they don't meet the hurdle they don't get the reward.

But, in my naivety, I could be completely foxed like small shareholders
seem to be most of the time.

Regards
Brian


At 18:32 29-10-00 +1300, you wrote:
> Brian, I think some of the most
> interesting observations have been made by
> the University research which shows more of a correlation between size
> of
> company and payments and not performance.
> This discussion has gone into other areas which is great but my
> original
> post was to do with, DO THEY DESERVE IT at below current price and
> considering the recent performance of the company is it fair.
> Id like to put this forward, if the size of the company has more to do
> with
> payment size then maybe its because they can get away with it (more
> shareholders)....eg. Marilyn not putting forward a no vote.
> With lots of investors in Co's like BRY etc, maybe small holders just
> dont
> bother, thinking that their vote wont make any difference.
>
> So I agree with marilyn, If the Execs are spouting around $1, then put
> the
> carrot out in front and dont serve it on a platter, esp in regards
> to
> companies with poor performance.
>
> R
> warner
>
>
>
>
>
>
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