AWF Madison seeks 75% hike in directors' fee pool

Labour provider and recruiter AWF Madison seeks 75% hike in directors' fee pool

By Fiona Rotherham

July 1 (BusinessDesk) - Shareholders of AWF Madison Group, the country’s largest recruiter and labour provider, are being asked to vote in favour of a $150,000 increase in directors’ fees at the annual general meeting later this month.

In a letter to shareholders filed with the NZX today, chairman Ross Keenan said the pool available to pay directors’ fees has not changed in five years and the company now has an enlarged board with two additional directors since 2010. All directors are now non-executive.

The board recommended shareholders vote in favour nearly doubling the annual pool to $350,000 from $200,000 at the Auckland AGM on July 22.

AWF Madison’s 2015 annual report said the board’s six directors as at March 31 were paid a total $210,000 in fees during the year, which exceeds the annual pool.

The chairman received $70,000 plus $6,000 in share-based payments, Ted van Arkel was paid $42,000 plus $4,000 in shares, managing director Simon Hull got $42,000, Julia Hoare received $45,000, and Wynnis Armour was paid $11,000 of her annual $45,000 stipend.

Former chief executive and director Mike Huddleston received no director’s fees but got a total $472,000 from his salary, bonus, and share-based payments.

Directors and senior employees can participate in the company’s Restrictive Share Scheme which is designed to incentivise senior staff to commit and remain with the group. It allows shares to be bought by those invited to do so with the company providing an interest-free loan at a price determined by the board and under the scheme’s rules. The shares issued are held as security for the loan until it has been repaid.

During the 2015 financial year AWF Madison issued 575,000 shares to senior staff for a value of $1.47 million.

In today’s stock exchange note, the company told shareholders it couldn’t say how much will be additionally lent out under the scheme in the next year but the total amount won’t exceed $600,000.

The acquisition price for the shares has ranged from $2.50 to $2.57 which is above the current $2.30 price of AWF shares on the NZX.

The company posted a 37 percent rise in full year net profit for the year ending March 31 with the 2013 purchase of recruitment firm Madison Group fully reflected in its results for the first time.

The Madison purchase was a bid by AWF to diversify away from its core base of blue collar workers into white collar recruitment and the former Madison boss Simon Bennett has now taken over as group chief executive.

A final dividend of 8 cents per share was paid out today, taking the total year’s dividend to 15.2 cents.

(BusinessDesk)

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