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NZ $100 notes - Source: ONE News
Nearly half of New Zealand directors pocketed a pay rise last year although increases have been "restrained", according to a new survey.
Consultancy firm Moyle Remuneration, which has tracked directors' pay for seven years, found 48% of those surveyed had a pay rise, although increases stayed below 2004-2009 levels.
Moyle's data showed a typical director earned around $34,429 annually and $44,000 if based in Auckland.
But Jarrod Moyle, the firm's director, said despite the increases, boards are showing restraint.
"While it seems director fee increases are back on the agenda for more boards, in an uncertain economic environment with a high degree of public sensitivity, most organisations were conservative and chose to adopt modest increases in board fees," he said.
New Zealand directors earned a quarter to a third of the fees paid to an Australian director in a similar-sized organisation.
The median pay increase last year was 11.1% for non-executive directors, compared to 2004-2009's gain of 15-20%.
Directors' pay has been in the spotlight since late last year as listed companies including Freightways, SkyCity, and Nuplex Industries looked to up directors' fees and some shareholders reacted with anger.
Moyle said annual reviews of fees could prevent increases gaining a lot of attention, even when they are deserved.
"It would be preferable for boards to review fees annually - as for executives - and make smaller, incremental adjustments to reflect market movements," he said.
The survey showed directors' fees are mostly made up of base pay, but they also earn a separate fee for appearing on committees.
Around 40% of organisations surveyed paid directors extra for committee work, which does incorporate board work, and over half of respondents reported increased workloads overall.
