Crown-owned companies to receive fair director pay.
State Owned Enterprises Minister Paul Goldsmith has announced plans to increase director fees for 22 Crown-owned companies, bringing them closer to market rate. This move aims to retain and attract high-quality directors with commercial skills needed for these boards.
Crown-owned companies have faced a major barrier in attracting and retaining directors due to underpaid fees, some of which have fallen by up to 56 per cent over the past 15 years. Goldsmith believes paying fair remuneration is crucial for their success. The increased fees will be implemented in two stages: next year at about 85 per cent of the market rate, and again in 2026 at around 90 per cent.
The 22 companies generated approximately $6.3 billion in revenue on assets worth $58 billion in the most recently completed financial year. Individual increases will depend on the complexity of directors' roles and their responsibilities. The Government hopes this move will enable these Crown-owned companies to perform as well as their private counterparts.