|
Attachment 1 |
Current Directors' Fees of the Board |
Purpose of Attachment
1. To advise the Wellington Water Committee of the current directors’ fees of the Board of Wellington Water Ltd (the Board).
Remuneration Review
2. Process for Directors Pay Review
Wellington Water Ltd’s constitution provides that the Board may only authorise payment of directors’ fees only with the shareholders’ approval.
Under the Wellington Water Committee’s terms of reference, the Committee has the responsibility of agreeing the remuneration of directors of the company. Approval requires a simple majority.
Movement in directors’ fees
3. Under the proposal from the Board, the percentage increase in directors fees are as follows:
|
Role |
Current fees |
Proposed fees |
Percentage increase |
|
Ordinary directors |
$20,000 |
$22,500 |
12.5% |
|
Chair of Audit |
$22,500 |
$25,000 |
11.11% |
|
Chair of the Board |
$40,000 |
$42,500 |
6.25% |
4. The movement in directors’ median fees over the last three years are as follows (based on the Institute of Directors -Directors’ Fees Report 2016):
|
Role |
Directors’ fees (median) |
|||
|
2014 |
2015 |
2016 |
Movement % |
|
|
Non-executive directors |
$40,000 |
$41,610 |
$42,994 |
7.49% |
|
Non-executive Chair |
$51,000 |
$52,500 |
$54,000 |
5.88% |
5. Note that directors of CCOs in the Wellington region have usually been remunerated at the lower quartile.
Non-executive Chairperson annual fees – breakdown (based on the Institute of Directors -Directors’ Fees Report 2016)
|
|
Lower quartile |
Median |
Upper quartile |
Average |
|
General |
36,000 |
$54,000 |
$86,400 |
$77,317 |
|
CCOs |
$30,000 |
$50,000 |
$79,470 |
$55,325 |
|
Electricity, gas, water and waste |
$53,500 |
$84,000 |
$145,000 |
$104,547 |
6. Non-executive directors annual fees – breakdown (based on the Institute of Directors -Directors’ Fees Report 2016)
|
|
Lower quartile |
Median |
Upper quartile |
average |
|
CCOs |
$25,000 |
$36,000 |
$48,125 |
$35,879 |
|
Electricity, gas, water and waste |
38,500 |
$57,000 |
$90,099 |
$62,767 |
Joycelyn Raffills
General Manager Governance and Regulatory
Hutt City Council