PFI seeks boost for directors' fee pool, appoints Susan Peterson

Property For Industry [NZX: PFI], the listed industrial property investor, wants to boost its pool for directors' fees by almost a third to give members a pay rise and allow for professional director Susan Peterson to join the company.

The five-person board wants to raise the fee pool to $430,000 from the $327,500 currently available, which it says will bring director payments in line with the market, allow for an extra director to be appointed, and provide scope to pay for directors to take on extra responsibilities, according to PFI's notice of meeting. Shareholders will vote on the resolution at their annual meeting in Auckland on June 15.

"As directors' remuneration has remained the same for some time, the board determined it would be prudent to assess if the current level of remuneration remained aligned to the market," the notice said. "In the board's opinion, ensuring director's remuneration is aligned to the market will enable PFI to continue to attract and retain high calibre directors."

PFI's directors were paid $280,000 from the pool in 2015, which was last expanded in 2013, the year it merged with Direct Property Fund to create an $800 million industrial property empire. The company's 84-strong property portfolio was valued at $986.6 million as at December 31.

If the resolution is passed, chairman Peter Masfen's fees would rise to $120,000 from $90,000, audit and risk committee chairman Anthony Beverly would get a $10,000 bump to $80,000, and independents Humphry Rolleston and John Waller would see their fees rise by $10,000 to $70,000. Managing director Greg Reidy doesn't get director fees.

Shareholders will be asked to ratify Ms Peterson's appointment, though her election is contingent on the increased pool being approved. Messrs Waller and Masfen will also be up for re-election at the meeting.

PFI shares rose 0.3% to $1.665 and have gained 3.4% this year. The stock is rated an average 'sell' based on five analyst recommendations compiled by Reuters with a median target price of $1.53.

(BusinessDesk)