Finance Minister Grant Robertson wrote to the chairs of Air New Zealand and the country's three biggest power companies asking them not to give themselves and directors a pay rise. Photo / Mark Mitchell
Finance Minister Grant Robertson wrote to the chairs of Air New Zealand and the country's three biggest power companies asking them not to give themselves and directors a pay rise. Photo / Mark Mitchell
Finance Minister Grant Robertson asked the chairs of the country's three biggest power companies and Air New Zealand not to give themselves and the companies' directors a pay rise.
And all four majority Crown-owned companies have fallen into line, telling the Herald they have heeded the Government's call.
In letters,released to the Herald under the Official Information Act, Robertson appealed directly to Air NZ chairman Tony Carter, and the chairpersons for Genesis, Mercury and Meridian.
All four companies are listed on New Zealand's stock exchange but are 51 per cent Government-owned.
As such, the Government has a significant say when it comes to the direction of the companies.
"As you know," the letters said, "this Government is committed to raising pay levels for those on low and middle incomes and we, and the public, expect restraint on Director remuneration."
"Given this, I do not support any increase in Director remuneration during this term of Parliament."
Robertson told the Herald that the Government wanted to show fiscal discipline across the board.
"Directors in those areas are well recompensed for what they do, and we didn't think it was appropriate for [them to receive] further increases."
An Air New Zealand board member is paid $100,000 per year while the chairman receives $270,000.
At Genesis, board members get $90,000 a year and the chair gets $180,000.
The letter was received by Carter, Meridian's chairman Chris Moller, Genesis' chairwoman Barbara Chapman and the chairwoman of Mercury Joan Withers, in June this year.
It said although none of the chairpersons have sought any changes to directors' fees, Robertson thought it would be helpful to "set out the Government's position".
In fact, the only circumstance in which Robertson said he would support a pay increase for the directors was in the event of a significant change in the current environment or other "exceptional circumstances".
Robertson noted in the letter that all four companies were performing well and the Government had confidence in their chairs and the directors.
He added that the directors have important jobs and deserve to be "fairly paid for the work they do".
The three energy companies have all confirmed to the Herald that directors' fees would not be hiked at their next annual meeting.
Mercury chairwoman Joan Withers said there would be no chair or directors' pay rises at October's annual meeting. Photo / Jason Oxenham
Mercury Chairwoman Joan Withers said as the company had been informed by the Government that it would not support any director pay increases, there would be none at October's annual meeting.
A Genesis spokesperson said the company's board was aware of the expressed position of the Government.
"Without the support of the Shareholding Ministers, the Genesis Board has determined that it will not be proposing a fee increase for shareholders consideration at this year's annual shareholder meeting."
Air NZ also said it would not be seeking an increase in directors' remuneration.
Last month, the Government changed the rules around how MPs' pay increases were calculated.
Reviews of MPs' wages will now take place after each election, setting what the increases will be for each of the three years of that term.
