Pharmacybrands want 23pc board fee hike
Chemist chain operator Pharmacybrands will ask shareholders to approve a near 23 per cent hike in directors' fees at its annual meeting in Auckland next month.
The company, which operates the Unichem, Amcal, Life Pharmacy, Radius and Care Chemist pharmacy franchises, wants to raise the total fee pool by $70,000 to $310,000.
This breaks down to an average of $34,000 per annum for each member of the company's nine-seat board.
In May, the company posted a 93 per cent gain in net profit to $9.9 million for the 12 months ending March 31, which included the boost from the acquisition of the Radius Pharmacy business which it acquired last year.
Companies have increasingly pushed for hikes to directors' fees in the past year, which have been frozen since before the Global Financial Crisis in 2008, saying they are needed to keep talent on the boards.
Among the firms to pass fees recently have been cloud accounting provider Xero and securities market operator NZX.
Last year Nuplex, Freightways, Michael Hill, Skellerup, and SkyCity Entertainment all asked shareholders for double digit increases to their board room fee pools.
The move had drawn the ire of the Shareholders' Association in the past, saying rises can only be justified if they are in step with the overall performance of the firm.
Pharmancybrands shares closed at 99 cents yesterday, and have gained 52 per cent over the past 12 months.
- © Fairfax NZ News