PFI seeks boost for directors' fee pool, appoints Susan Peterson to board

Tuesday 24th May 2016

Property For Industry, the listed industrial property investor, wants to boost its pool for directors' fees by almost a third to give members a pay rise and allow for professional director Susan Peterson to join the company.

The five-person board wants to raise the fee pool to $430,000 from the $327,500 currently available, which it says will bring director payments in line with the market, allow for an extra director to be appointed, and provide scope to pay for directors to take on extra responsibilities, according to PFI's notice of meeting. Shareholders will vote on the resolution at their annual meeting in Auckland on June 15.

"As director's remuneration has remained the same for some time, the board determined it would be prudent to assess if the current level of remuneration remained aligned to the market," the notice said. "In the board's opinion, ensuring director's remuneration is aligned to the market will enable PFI to continue to attract and retain high calibre directors."

PFI's directors were paid $280,000 from the pool in 2015, which was last expanded in 2013, the year it merged with Direct Property Fund to create an $800 million industrial property empire. The company's 84-strong property portfolio was valued at $986.6 million as at Dec. 31.

If the resolution is passed, chairman Peter Masfen's fees would rise to $120,000 from $90,000, audit and risk committee chair Anthony Beverly would get a $10,000 bump to $80,000, and independents Humphry Rolleston and John Waller would see their fees rise by $10,000 to $70,000. Managing director Greg Reidy doesn't get directors fees.

Shareholders will be asked to ratify Susan Peterson's appointment, though her election is contingent on the increased pool being approved. Waller and Masfen will also be up for re-election at the meeting.

PFI shares rose 0.3 percent to $1.665 and have gained 3.4 percent this year. The stock is rated an average 'sell' based on five analyst recommendations compiled by Reuters with a median target price of $1.53.

BusinessDesk.co.nz

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