The Shareholders Association has lauded Abano Healthcare's move to make directors receive half their fees in shares.
The healthcare company says directors will buy the shares at market rates during set times during the year for at least the next three years, which will avoid diluting investors holdings, as well as stock price volatility.
Shareholders Association chairman John Hawkins says it's exactly what the lobby group has been pushing for.
He says it means the directors have aligned their own interests with those of all the rest of the shareholders and where the share price goes, to some extent so does their fee income.
"If they do very well, they do have the opportunity to do a bit better because of the rising share price, if, for whatever reason, the company doesn't perform as well then the shareholders and the directors will take a hit, not just the usual one-way traffic".
Mr Hawkins says he would like to see other companies take this approach and the better the alignment, with not only directors but also executives and shareholders, then the better everyone does out of it.
