Hallenstein Glasson shareholders voted to provide an interest free loan of up to $500,000 to enable Glassons managing director Diane Humphries to buy shares in the company on the market.
The notice for the company's annual meeting yesterday said the aim of the employee share scheme was to incentivise senior
management to stay with the company, building up an equity interest over time and align their interests with those of all shareholders.
Shares bought under the scheme are to be held for at least three years before being transferred to the employee involved. If the employee leaves before three years, proceeds from the sale of the shares are first used to repay the loan, with any surplus being paid to the company.
In 2006 shareholders gave approval for Ms Humphries, as an executive director, to be provided with up to $500,000 assistance to buy shares. When she left the company in December 2007 the relevant shares were sold and proceeds used to repay the loan, the notice said.
Ms Humphries again became an executive director in May this year when she became managing director of the Glassons womenswear business.
The resolution to provide her with a loan to buy shares was carried yesterday with 13.6 million votes in favour, 850,000 against and 1.6m abstentions.
- NZPA
