Auckland Airport backtracks on director fee rise

Photo / Martin Sykes

Auckland Airport directors have eased back on the extra amount they are proposing to pay themselves, after feedback from shareholders.

They had proposed shareholders vote on a resolution at the annual meeting next Thursday that the total quantum of annual directors' fees rise 12.2 per cent or $140,000 to $1.29 million.

But today the airport said that after considering feedback from shareholders, the board had decided that if the resolution was passed, it would apply only half the proposed increase in the 12 months following the annual meeting.

The full increase would apply in the year following the annual meeting to be held in 2011.

That decision was made even though many of the largest shareholders had indicated their support for the proposed increase, which had been based on - but was less than - recommendations from remuneration specialists Hay Consultants and Spencer Stuart.

Auckland Airport said the fee allocation now proposed reflected a compound annual increase of 2.3 per cent a year from 2007, which compared to inflation of 2.7 per cent a year from 2007 to the third quarter of 2010.

- NZPA