Fletcher dismisses bonus talk

By SIMON HENDERY

After prompting from the Shareholders' Association, Fletcher Challenge Forests yesterday denied its top executives were in line for bonuses if the Central North Island Forest Partnership deal is approved at today's shareholder meeting.

Association chairman Bruce Sheppard asked the Stock Exchange's Market Surveillance Panel to seek clarification from Fletcher over "rumours" chief executive Terry McFadgen and company secretary Paul Gillard stood to benefit from bonus payments if the deal was approved.

Fletcher responded by saying there were no arrangements in place, or contemplated, for company directors or executives to receive such bonuses.

Gillard said the board's remunerations committee had yet to discuss executive bonuses for this year and there was nothing in his present bonus structure relating to the CNIFP acquisition.

Sheppard said he would raise the issue at today's meeting.

"If the basis on which [McFadgen's bonus] is paid is absolute gross return rather than return relative to assets then it's easy to see why he's got a sizeable incentive to get this deal through."