Fee rises queried

2022-08-04T07:00:00.0000000Z

2022-08-04T07:00:00.0000000Z

NZME

https://kapitinews.communitynews.co.nz/article/281492165076852

OPINION

I received the voting link for the Farmers Mutual Group FMG AGM to be held in Napier on August 26. Resolutions 3 and 4 propose changes to chairperson and director fees. Resolution 3 proposes chairperson fees to rise from $117,000 to $151,500 per annum (+29.5 per cent ) Resolution 4 proposes director fees rise from $63,000 to $82,000 per annum (+30.2 per cent ). In light of the currently high inflation environment, coupled with FMG being a farmer mutual insurance organisation, I believe such an increase is inappropriate and will further fuel input costs increase for agricultural business. I recognise that this was signalled as an outcome of the 2021 annual general meeting. However much has changed in the NZ economy in the short, intervening period, particularly farm gate input cost increases. A more responsible approach from the FMG Board would be to maintain fees at the 80 per cent median of the insurance and finance sector director remuneration scale and not move to 100 per cent. I also note that for the two director positions to be filled this AGM, there are six nominations. From reading the bios of each candidate, each is probably not critically motivated by remuneration. Lou Bird Porangahau

en-nz