Shareholders' group unhappy over Feltex pay deal

The Shareholders' Association has spoken out about how Feltex Carpet went about setting the potential size of its chief executive's pay packet.

A regulatory decision by the stock exchange operator New Zealand Exchange (NZX) last week revealed Peter Thomas could receive as much as A$756,000 ($883,074) a year, including performance linked bonuses of up to 80 per cent of his A$420,000 base salary.

According to an article in the Dominion Post today, the Shareholders' Association was unhappy Feltex had used a waiver under the NZX's listing rules to approve Mr Thomas' pay, rather than seeking shareholder approval.

Mr Thomas was appointed to the role in November last year. He had been a director of Feltex since 1997 and was acting chief executive since former CEO Sam Magill left the role last August.

Shares in Feltex last traded Friday at 40c, compared to the $1.70 they were trading at when the company floated on the stock exchange in 2004.

- NZPA