Tapware and bathroom fittings manufacturer Methven says it will increase directors' fees only if the company increases its net profit by more than 20 per cent.
"If we don't achieve the growth target, the directors' fees will remain unchanged," chairman Phil Lough told shareholders at the annual meeting in Auckland.
"This approach provides transparency and aligns directors' remuneration with returns to shareholders.
"In addition, we are also developing an executive incentive scheme with share price targets."
Performance-based schemes with growth targets would be introduced for the board and executive management team. The Auckland-based company also affirmed its profit guidance for the 2012/2013 year.
"We expect to grow full-year net profit after tax and reduce net debt further," Lough said.
"As a result of the current economic climate in the UK and only a marginal improvement in group net debt, we anticipate first half earnings to be down."
