By SIMON HENDERY
The Contact Energy bid to boost its directors' fees has the support of one of the country's more prominent public company directors.
Auckland chartered accountant Keith Smith says that given Contact's size and complexity, a rise in fees from $28,000 to $40,000 (and from $58,000 to $80,000 for the
chairman) seems reasonable.
Mr Smith is a partner with newly merged BDO Spicers and has more than 15 years' experience sitting on company boards.
He chairs the boards of the country's largest retailer, The Warehouse, and our largest tourist operator, Tourism Holdings.
He is also deputy chair of biotechnology research and development company Genesis Research and Development, sits on the boards of private companies and specialises in consultancy work on directorships and corporate restructuring.
"My personal view is that those [Contact] increases are not excessive for the size of the company," Mr Smith says. "If you start comparing rates with Australia, forgetting exchange rate differences, that's still below what the Australian rates are for directors."
He agrees with the Institute of Directors' view that the role of director has become more demanding. As well as perhaps 25 days a year of work for meetings, "numerous bits and pieces ... seem to crop up [in] between."
