Common interests, rewards and shareholdings in the top 20 New Zealand companies
This paper examines board of directors’ remuneration, shareholdings and directorships in the Top 20 New Zealand public companies by using recent data from annual reports. The findings reveal that New Zealand directors are not rewarded under performance-based pay schemes; director fees are purely in form of cash, either share option nor grants regularly. Major companies do not force their directors to own shares of companies they sit; over half of companies have non-shareholding directors available; moreover, about one-fifth directors do not hold any company shares. In terms of directorships, directors hold more than one board seats is a prevalent phenomenon in top 20s; near three quarters directors have multiple directorships; over fifty percent directors hold more than three director seats. It means a significant proportion of companies are operating by directors with network links in other businesses. Business is interrelating widely in large companies of New Zealand. It further suggests that restricting directors to four or five directorships be considered as one of corporate governance standards in New Zealand.