Nzo Agm

[Snapper]

As I've got a reasonable chunk of my capital tied up in NZO I thought it would be a good idea to go to Wellington for the AGM and eyeball the guys who are running the show.

First of all, who else is going to this and secondly, what sort of questions should shareholders be asking? There are a few obvious ones...

*What's the director's plans for the cash?
*Is a dividend policy going to be established?
*How do they justify increasing director's fees from $340K to $600K?

What other questions are worth asking??

Just a point on the director's fees, I think that a director should be able to charge at about the same rate as a senior corporate lawyer, say $500/hr. There are 7 directors currently getting $340K which averages out to just under $50k each. If they get their pay increase then it averages out at $85K each. Do the directors spend 1700 hours on NZO business each year? Doubt it.

Has anyone on this forum been a director of a listed company? What sort of work goes into it?

[Wilkins_Micawber]

Just a point on the director's fees, I think that a director should be able to charge at about the same rate as a senior corporate lawyer, say $500/hr. There are 7 directors currently getting $340K which averages out to just under $50k each. If they get their pay increase then it averages out at $85K each. Do the directors spend 1700 hours on NZO business each year? Doubt it.

Minor correction ... $85K / $500 per hour = 170 hours = approx 4.5 working weeks

[Snapper]

Minor correction ... $85K / $500 per hour = 170 hours = approx 4.5 working weeks

Just as well I'm not a director considering my maths :o ...starts to look a bit more reasonable.

[Naylz]

I'd love to go myself but have had far too much time off recently.
Would love to chat to you about questions you are going to put to the board.

[Wiremu]

Snapper,

Its not just the board meetings, its the participation on the committees that takes the time, and more so if you are chairman of a committee.

In my opinion at $600k all up they are still being underpaid.

[Snapper]

Snapper,

Its not just the board meetings, its the participation on the committees that takes the time, and more so if you are chairman of a committee.

In my opinion at $600k all up they are still being underpaid.

So for the average non-executive director, how much time would they spend per year on NZO business?

[duncan macgregor]

Snapper,

Its not just the board meetings, its the participation on the committees that takes the time, and more so if you are chairman of a committee.

In my opinion at $600k all up they are still being underpaid.

When the left wing dictators bleed the system dry the people eventually rebel and the system collapses.
We have the extreme right system where the directors of companies running companies collapsing our system of trading with similar greed.
Nobody should get paid higher than the prime minister of the country in a paid job. At least the Aussie prime minrster is going to do something about it.
Want big money go private or obey the rules. Macdunk

[digger]

Snapper,

Its not just the board meetings, its the participation on the committees that takes the time, and more so if you are chairman of a committee.

In my opinion at $600k all up they are still being underpaid.

They would be underpaid if they spent all there time committed to one company. The real situation is that directors are what they call professional and are a closed group that go around being directors of companies all over town.Piles of 60 or 70 thousand repeated many time adds up.
The ausies are on to it it has to change.
Directors and CEO pay has to be fixed not by a cosy inside arrangement but by each company forming a shareholders council made up active and committed long term holders that are not also directors,staff or on any board of any company.If the western world had done that we would not be in the position we are in today.
See the bank of England directors after stuffing up the banking systen are now complaining that the usual christmas bonus will not exist.The average joe on the street does not get a bonus if he stuffs things up so why should a director.To answer my own question it is because directors set their own pay and conditions,the average joe gets what is left over.
This crash has sort of got me a bit excited as have never been happy with the unfairness of how the finanical world works.Time for a big change.
Digger

[swissboy]

Now we will see the difference in Management greed.
Vectors chief rejects increase, because of slump on sharemarket. What will these guys do?????

[digger]

Now we will see the difference in Management greed.
Vectors chief rejects increase, because of slump on sharemarket. What will these guys do?????

Swissboy and everone else,this is not the right question. The western world has been brought to its knees by just letting the recepient decide what payout they should get. The real question is not what will they do but what will you do. I will be voting against director and CEO pay rises and additional directors hoping on baord until we sort out the structure of how the company should work.Care to join me?
Digger