MEMORANDUM                                                  11                                                        07 March 2017

Our Reference          17/205

TO:                      Chair and Members

Wellington Water Committee

FROM:                External Author (Wellington Water Ltd)

DATE:                10 February 2017

SUBJECT:           Wellington Water Limited Directors' Fees

Recommendation

That the Committee:-

(i)    notes the advice from Hutt City Council regarding the current directors’ fees of the Board of Wellington Water Ltd attached as Appendix 1 to the memorandum;

(ii)   suggests an increase be authorised of:-

       $2,500pa for ordinary directors, taking ordinary directors to $22,500pa;

       $2,500pa for the Chair of the Audit Committee taking that director to $25,000pa; and

       $2,500pa for the Chair, taking that director to $42,500pa; and

(iii)  notes that this would represent a total annual increase of $10,000pa. The increase would be effective as from (1 March 2017).

Background

1.    The current director fees are $20,000 pa for directors and $40,000 pa for the Chair.  These were last set in January 2014.

2.    Since that time the size and scope of the company’s activities has increased significantly.  Greater Wellington Regional Council has joined and additional resources form both Wellington City and Porirua City Councils have been assumed.

3.    Additional responsibilities and time have occurred with the introduction of the new Health and Safety legislation and a separate Audit Committee of the Wellinton Water Limited Board has been established on which all directors sit.  Mr David Benham is the Chair.

4.    The approved budget for directors’ fees has been underspend for the last two years as the size of the Board has reduced from six to five directors.

5.    Given the time since the last review and the increased scope, a modest increase is suggested.

Approvals Required

6.    The Companies Act enables the Board of a company to authorise payment of directors’ fees.  The constitution of Wellington Water Limited requires the shareholders prior approval before the Board can do so.  The five shareholding councils have delegated to their representatives on the Wellington Water Committee this power.

Appendices

No.	Title	Page
1View	Current Directors' Fees of the Board	13

Author: External Author (Wellington Water Ltd)

Wellington Water Limited