KEY POINTS:
The New Zealand Exchange launched a charm offensive yesterday to sell chief executive Mark Weldon's controversial bonus scheme, but appears to have so far met continued resistance from shareholders.
NZX chairman Simon Allen has spoken to major shareholders to explain the scheme, which could see Weldon increase his 5.3 per cent stake in the company to 9.9 per cent, worth around $20 million at the current market capitalisation.
Under the scheme, Weldon would receive the shares in three allotments if the NZX achieved a compounding total shareholder return - dividends plus share price gains - of 10.5 per cent a year for three years.
Here is the latest selection of your views:
Ken
A bonus for just doing what he is already paid extremely well to do? Once again its the average investor being shafted.
Phil
Is the bonus justified - simple did Weldon lead the gains, if so, then probably a fair reward, if he was simply hand on the tiller, then no way.
Dick
Of course there should be no further bonus for Mark Weldon. He already has a large holding (around 5 per cent) which is adequate to align his interests with other shareholders. The ten per cent now mooted comes at the expense of shareholders and is completely unjustified. His remuneration is already more than sufficient.
Craig
The return of 10.5 per cent is rather small. With the cash they have in the bank, they will get around half of that in interest. The saddest part is that there are a lot of other suitable CEOs in NZ that would do it just for the $850,000 a year income. The NZX is practically giving away an asset that has been around for a long time to a guy who has only been involved for a few years.
John
No such bonus can possibly be justified for what is basically a monopolistic utility! Can we imagine the boards of either the NYSE or the London SE being so gullible,post Grasso? The NZSE needs some serious reflection time,perhaps with international input.
Ian
Weldons bonus, is it deserved? Absolutely not! After all, it is your average NZ shareholder that ends up paying in the end - typical.
