The directors of Christchurch-based power company Orion have received massive payouts as a result of a controversial rejig of the company's holding in Auckland gas company Enerco.
Orion - formerly called SouthPower - sold Enerco's retailing operations to Contact Energy last year, and transferred the remainder of the company's gas assets
to a new entity called Qest. Orion subsequently bought out the minority shareholders of Qest and disbanded the company's board of directors.
The moves were criticised by minority shareholders in Enerco at the time. As a result of the board disbandment, the Qest directors were paid "cessation allowances", according to the company's latest annual report. The largest payment was $106,000 to Gordon Gilmour, an independent director of the company. John Gray, who was until recently chairman of Orion, was paid $97,000 when Qest's board was wound up. Another independent director, Stuart Walbridge, received a payout of $93,750 while Philip Carter and Linda Constable (the new Orion chairwoman) each received $52,500. These final payments were on top of regular directors fees at Qest ranging from $58,500 for Mr Gray to $31,500 for Mr Carter and Linda Constable.
The fees for being Qest directors were on top of fees paid to the same people, except Mr Walbridge and Mr Gilmour, who were also directors of Orion. Mr Gray again topped these payments, with $51,000 in annual fees, as well as special remuneration of $16,800. In all, Mr Gray was paid $223,800 in directors fees by Orion group companies in the group's latest financial year.
Three of the directors, Mr Carter, Linda Constable and Mr Gray, have said they have chosen to make a "substantial donation" to local charities from their cessation allowances.
