Award for Guinness Peat chief

Governor-General Sir Anand Satyanand presents Tony Gibbs with the insignia of a Companion of the New Zealand Order of Merit. Photo / Greg Bowker

Guinness Peat Group's New Zealand director Tony Gibbs was yesterday honoured for his services to business, while his company's annual report showed his reward for services to shareholders was more than halved last year.

Gibbs, 61, was made a Companion of the New Zealand Order of Merit in a ceremony in Auckland.

Earlier yesterday, GPG's annual report was released, showing Gibbs' total remuneration for the December year was 1.1 million ($2.76 million), well down from the 2.69 million he received the year before.

While Gibb's remuneration during the 2007 year was boosted by a 1.71 million bonus, none of GPG's directors received a bonus for 2008, a year when the company reported a 50 million loss, its first full-year loss in 20 years.

"Basically the formula's very clear," said Gibbs who along with other GPG directors has faced criticism in the past for the level of his remuneration. "We don't even start getting a profit contribution or bonus until you've made 12.5 per cent on your opening shareholders' funds, and then it builds slowly so you've got to make a whopping profit to make a bonus".

Gibbs' remuneration comprised of a 619,000 basic package, plus 92,027 in accrued leave entitlement and a 388,011 gain on the exercise of options.

But he said the gain on the options, which had an exercise price of 22p, looked better than it was.

"I paid tax of 39 per cent on those gains and the shares are now down the toilet."

Gibbs was the highest paid GPG director during 2008, with next highest paid being Gary Weiss who received 907,000, less than a third of the 3.06 million he received the year before.

Chairman Sir Ron Brierley received no remuneration during 2008.

GPG also released details of its dividend reinvestment plan yesterday under which investors can elect to receive one new share for every 25 they hold as at March 13 rather than the 1p a share dividend.

GPG's shares, which trade on the NZX the ASX and LSE, closed yesterday up 2c at 76c in New Zealand.