BusinessDesk report by Tina Morrison
Trade Me, New Zealand’s largest online auction site, wants to increase the pool of fees for its directors by 23 percent to accommodate paying for two director positions which were previously funded by Fairfax Media.
The company will ask shareholders at its annual meeting in Wellington next month to increase the fee pool for its directors to $800,000 from $650,000, according to the notice of meeting published today.
The fee pool was set up before Fairfax sold down its holding in December 2012, when two of the directors represented Fairfax and didn’t receive payment from Trade Me. There is now no connection between the companies and the fee pool has to cover two additional directors, former Fairfax representative Gail Hambly and new director Paul McCarney who was appointed in November 2012.
The board’s policy is to review fees every two years and it plans to increase fees by $10,000 a year for the chairman and by $5,000 a year for other directors.
Trade Me chairman David Kirk currently receives $195,000, while the four non-executive directors receive $85,000 each excluding committee fees. It is currently using $610,000 of the $650,000 fees available.
The board wants to allow fees for an additional director although no particular appointment is currently being considered, according to the notice.
Shares in Trade Me rose 1.5 percent to $4.65, taking their gain so far this year to 16 percent.