Meridian pays staff $3m bonus as energy prices soar

State-owned power company Meridian Energy has paid staff $3 million in Christmas bonuses at a time when power prices are rocketing .

News of the multi million dollar payment -- shared between Meridian's 370 employees -- was leaked to a Christchurch daily newspaper yesterday after staff were told about it last Friday.

The Meridian board has approved the proposal that every staff member receive a sum equal to 10 per cent of their base salary, the newspaper reported.

According to salary figures in the company's latest annual report, about one-third of the SOE's staff would have received bonuses of $10,000 or more, with nine of those taking home at least an extra $25,000 and chief executive Keith Turner getting $90,000 on his base salary of more than $900,000.

One hundred and twenty-two Meridian staff members have pay packets of $100,000 or more.

Meridian spokesman Alan Seay told the newspaper that the payout, the first of its kind by the power generator and retailer, was not a bonus but a "one-off performance-related payment" rewarding employees for their input into the recent sale of its Australian subsidiary, Southern Hydro, for A$1.425 billion ($1.5 billion).

"A bonus is something given for no particular reason. This is something that recognises the contribution to that result."

A broad cross-section of the workforce had been involved in the deal, which returned a $600 million profit.

"We believe it is an outstanding result," Mr Seay said.

Meridian, which lifted its profit by 64 per cent to $218 million this year, has increased its power prices by about 30 per cent during the past two years.

A spokeswoman for State Owned Enterprises Minister Trevor Mallard told NZPA this morning he had no comment as it was an operational matter.

The Government also benefited from the record high power prices, pocketing a $141.84 million dividend from Meridian in the year to June 30.

That was a 64 per cent increase on last year's $86.4 million final dividend, as below-average lake levels led to a wholesale price spike.

- NZPA