21 Jan 2013

Diligent 'more focused on compliance'

8:35 am on 21 January 2013

Listed company Diligent Board Member Services says it is now more focused on compliance and governance after admitting that it awarded top executives too many stock options.

On Christmas Eve, the New York-based company set up a special committee of independent directors to investigate past issues of stock options.

The committee found Diligent issued too many stock options to chief executive Alex Sodi and another top executive under the incentive plans it used to reward them for meeting certain financial targets.

The extra options will be cancelled, and the company is working on alternative compensation packages for those affected.

Diligent says it also found other instances in which shares awarded to New Zealand employees may not have complied with regulation.

The company's chairman, David Liptak, said the committee found the non-compliance was inadvertent.