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The New Zealand Exchange's largest individual shareholder is to talk to the NZX board this week about a plan for chief executive Mark Weldon to acquire shares worth around $10 million.
Warren Couillault, chief investment officer with Fisher Funds Management, which owns 9.9 per cent of the shares in NZX, said Fisher was considering its position on the proposal.
"We will be discussing the matter with the NZX board this week," he said.
Tony Gibbs, New Zealand director of investment company Guinness Peat Group, which holds 2.3 per cent of the NZX shares, said he was "not particularly thrilled at all" with the proposal and planned to talk to the NZX chairman.
Under the proposal for Mr Weldon to gain shares, NZX would lend him around $10 million to buy up to 1.1 million shares. These would then be held by an NZX nominee company.
Mr Weldon would be able to take full ownership of the shares in three tranches over the next two to three years if a set performance target was achieved. He would not be required to pay interest on the loans until this target was exceeded.
The performance target is that "total shareholder return" -- meaning any rise in share price plus annual dividends -- exceeds an annual compounding rate of 10.5 per cent.
The issue is due to go to a vote at the annual meeting on March 30.
Mr Weldon already owns nearly $10 million worth of NZX shares, more than 5 per cent of the company, bought under a similar scheme that was approved before the creation of NZX as a limited liability company in 2002.
Mr Weldon's base salary is $450,000, with a maximum annual bonus of $450,000. The annual report shows that Mr Weldon received a total of $875,000 last year.
- NZPA
