16 Oct 2008

No fee rise for Vector directors

12:31 pm on 16 October 2008

The Auckland lines company Vector has withdrawn a proposal to raise fees for directors.

Shareholders were due to vote on the proposal at the company's annual meeting next week.

Vector has not increased directors fees since it listed in 2005.

Given domestic and global economic conditions, Chairman Michael Stiassny says that asking shareholders to approve a fee increase for board members this year would be inappropriate.

At least for now, Mr Stiassny will forego an increase of $40,000 and non-executive directors, $20,000.

Vector says it will talk to shareholders about the decision at the annual meeting next week.

Vector's decison comes as another power firm, Contact Energy, still intends to double the pay pool for its directors to $1.5 million.

The vote at Contact's annual meeting next week will be a formality, as it already has the approval of its majority shareholder, Origin Energy.

But the decision has already raised the ire of other investors, including the Shareholders Association and some institutional investors, who say some directors do not deserve a pay rise.