Abano seeks director fee increase

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Medical equipment supplier Abano Healthcare will ask shareholders to approve a 9 per cent increase in director fees at an Auckland meeting later this month.

In a notice filed with the NZX this morning, the firm said it wants to increase the total pool of funds available to pay members of its board to $429,500 from $395,000 currently.

That represents an average annual payment of $53,687.50 for each of the company's eight directors.

This is the first time Abano has sought to lift payments to directors since 2010, when an $84,500 increase was approved by shareholders. At the time it represented a 24.5 per cent hike to the fee pool.

Abano shares have gained 8.9 per cent over a two year period, about on par with the increase. On a one year basis, the company's share price has risen 30.9 per cent and at yesterday's closing price of $5.63, is sitting 12c shy of the two-and-a-half year high it hit in the middle of last month.

In July the company reported a full year net profit of $1.6 million, down from $11.5m in the previous year when earnings were temporarily boosted by $12.3m from the sale of its National Hearing Care stake.

The stock is rated as "buy" according to a Reuters poll of two New Zealand equity analysts.

- © Fairfax NZ News

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