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Mighty River Power director fees up 73 per cent

Published: 11:23AM Thursday April 04, 2013 Source: Fairfax

Mighty River Power's directors are getting hefty increases in fees ahead of the company's float, State Owned Enterprises Minister Tony Ryall has announced.

The Government announced that the annual fees for directors would increase by 73% to $85,000 a year.

Chairwoman Joan Withers will see her fees increase by more than 50%, to $150,000 a year.

Ryall said the move was to ''adjust the level of fees MRP directors are paid to bring them more into line with comparable listed companies''.

"Fees need to be at a level that will attract and retain directors who have the required governance skills to operate effectively in a listed company environment," Ryall said.

As well as the pay increase, the Government will allow the company an $85,000 pool ''for committee work'' to be distributed by the board.

"We are advised that the current fees for MRP directors are well below those paid by comparable listed companies. We understand directors of similar sized companies listed on the NZX currently receive at least twice the current MRP fees, if not more," Ryall said.

"We have made a reasonable but conservative increase to MRP directors' fees to compensate for the increased responsibility in their new roles, and the added risks around being on the board of a publicly listed company," Ryall said.