Kathmandu CEO incentive scheme irks NZ Shareholders Association
The shareholders association said it was concerned that the board didn't specify what the new target would be.
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The Shareholders Association is unhappy with an incentive scheme Kathmandu Holdings [NZX: KMD] proposes for its new chief executive, Xavier Simonet.
Kathmandu's board is seeking shareholder approval at a meeting in Christchurch this Friday to grant performance rights to Simonet, tied to total shareholder return and earnings per share growth. Following opposition from some shareholders that the targets were too low given they would be measured against last year's low profit, the board said yesterday it would "exercise discretion" and set the earnings per share growth target above that detailed in its Notice of Meeting.
However, the shareholders association said it was concerned that the board didn't specify what the new target would be.
"How are shareholders supposed to approve a scheme where they have no idea what targets will actually apply?" association chair John Hawkins said in a statement.
The association is also concerned that, because of the last minute change, shareholders didn't have time to alter their proxy votes, he said.
Kathmandu, the outdoor clothing and equipment chain, posted a 2015 profit of $20.4 million, down from $42.2 million in 2014, and $44.2 million in 2013. It has forecast 2016 profit of $30.2 million
The company's shares last traded at $1.56 and have shed 28% so far this year.
(BusinessDesk)
Tina Morrison
Tue, 17 Nov 2015
Tue, 17 Nov 2015
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Kathmandu CEO incentive scheme irks NZ Shareholders Association
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