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Auckland Airport Directors' Fees

Contributor:
Fuseworks Media
Fuseworks Media
Auckland Airport Directors' Fees

Since delivering to shareholders its notice of meeting for this year's annual meeting of shareholders, the board of directors of Auckland International Airport Limited has received feedback from shareholders in relation to the resolution proposing a 12.2% increase in directors' fees by $140,000 from $1,150,000 to $1,290,000 per annum. The proposed increase was based on (but is less than) recommendations from two leading remuneration specialists, Hay Consultants and Spencer Stuart.

The board has considered all of the feedback. Although many of the largest shareholders have indicated their support for the proposed increase, the board has come to the view that if the resolution is passed, it will apply only half of the proposed increase in the first 12 months following the annual meeting and will subsequently apply the full increase in the year following the annual meeting to be held in 2011.

This effectively means that the increase in directors' fees will be limited in the year to October 2011 to a total of 6.1% of fees set in 2007 and in the year to October 2012 to a further 6.1% of the 2007 fees. The proposed allocation reflects a compound annual increase of 2.3% per annum from 2007 which compares to inflation of 2.7% per annum from 2007 to the third quarter of 2010.

Directors had announced that they intend to apply 15% of base directors' fees actually payable to them to acquire shares in the company if the resolution were passed. Directors now advise that, on the basis of the revised approach to the allocation of fees now proposed, if the resolution is passed they will apply 7.5% of their base directors' fees actually payable to them to acquire shares in the first year and the full 15% in the second year.

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