2 Nov 2015

Spark scraps vote on board directors' pay

7:14 am on 2 November 2015

Companies are starting to take discontent about board directors' remuneration into account, the Shareholders' Association says.

Spark New Zealand

Spark has scrapped a plan to vote on a $8000 increase for its directors. Photo: RNZ / Kim Baker Wilson

The telecommunications company Spark has scrapped a plan to vote on a $8000 increase for its directors after some shareholders expressed concern about raising the remuneration fee pool to $1.6 million a year.

Shareholders' Association president John Hawkins said it was important to get a balance between pay and skills, and it was not always necessary to pay more than the job was worth.

He said companies were listening very closely to their shareholders - and that had led to a change in attitudes in some cases.

Mr Hawkins said it was important for companies to explain the reasons for directors' pay rises.