Fletcher Building's annual meeting was to include a resolution asking shareholders to approve a 25 percent increase to the annual amount available to pay directors' fees, but that was withdrawn. Photo: RNZ / Cole Eastham-Farrelly
The board of Fletcher Building has withdrawn a resolution asking for an increase in its directors' fee pool in the face of shareholder pressure.
The building firm's annual meeting at the end of the month (27 October) was to include a resolution asking shareholders to approve a 25 percent increase to the annual amount available to pay directors' fees to a maximum of $2.5 million, from $2m.
In a statement, Fletcher chair Bruce Hassall said the fees had not been increased in 12 years, and the rise would bring the payment pool in line with comparable listed companies in New Zealand and Australia.
The board was withdrawing the resolution following what he called an "engagement process" with shareholders, he said.
Hassall said some shareholders were supportive, but others thought the payment pool should not be adjusted until necessary.
"On matters relating to its own remuneration, the board prefers a clear mandate, and so after careful consideration, the board has decided to withdraw the resolution. Shareholders are not required to do anything," Hassall said.
It had been reported that two large firms, which manage the proxy votes for large investment funds, were opposed to the pay rise given Fletcher's performance in recent years.
Shareholders Association chief executive Oliver Mander said the association had concerns about the increase.
"We certainly gave them some fairly clear feedback about what we thought of the fee pool increase," Mander said.
"They already have the largest fee pool of any NZX-listed company and we didn't feel that the conditions were appropriate for them to be increasing that that fee pool any further."
Fletcher Building declined to provide further comment.