SouthPortNewZealandLtd
Non-executivedirectors’feesbenchmarking
Summaryreport
22August2022
RemunerationServiceprovider Independencedeclaration
PwC’sRewardServicesteamhasbeenengagedbytheSouthPortNewZealandLimited(SouthPort)BoardofDirectors(theBoard)toprovideindependent remunerationbenchmarkingservicesinrelationtoSouthPort’sDirectors’fees(theServices).
AsleadengagementPartnerfortheprovisionoftheServicestotheBoard,Ideclarethatnoinfluencehasbeenbroughttobearuponmeor,tothebestof myknowledgeandbelief,anymemberofthePwCRewardServicesteam,byanyBoardmember,employeeorexecutiveofSouthPortoranyotherparty regardingtheServicesoroutcomesoftheServices.
Dated22August2022
ChrisPlace Partner
PricewaterhouseCoopers
Thetablebelowsummarisesmarketremunerationdatafordirectors’feesfromacomparatorgroupof11NZX-listedcompanies,agreedwiththeSouthPortBoard forthepurposesofthisexercise.Thebasisforthecomparatorgroupcompositionwascomparablemarketcapitalisation.Themedianmarketcapitalisationacross thesampleis$195million,alignedtoSouthPort’scurrentmarketcapitalisationof$195million.DetailsofthecomparatorgroupareprovidedinAppendix1tothis summaryreport.
ThemarketmedianpositionforspecifiedBoardrolesissummarisedinthetablebelow,whichalsocomparesSouthPort’scurrentdirectors’feesagainstthe medianofthecomparatorgroup.Dataiscurrenttothedateofthisreportandhasbeensourcedfrompubliclyavailableinformation,includingannualreportsand NZXdisclosures.WheretheBoardchoosestopositionitsfeesagainstthismarketdatawilldependontheBoard’sviewoftheoverallrelevanceofthecomparator groupandspecifically,SouthPort’sviewonrelativecomplexityofoperations,scale,ranking(byscale)andriskprofileascomparedwiththoseofthecomparator companies.
ForcompletenesswenotethatwhileaRemunerationor‘People’CommitteeisnotevidentinSouthPort’scurrentBoardstructure,thiscommitteefeaturedin7ofthe11peer comparatorcompanies,withamedianvaluefortheChairroleof$7,500(fewpaidmemberfeestothiscommittee).
1.Analysisofthe9companiesinthesamplewhichhadanon-executiveBoardChairdomiciledinNZ.ThemajorityofChairrolesreceivenocommitteefees,withthebasefeerecompensingallBoard contribution/rolesheld.Whereadditionalfeesarepaid,thisdataisincludedinthemarketanalysisabove.
2.AnalysisofbaseNEDfeesforall11companiesinthecomparatorgroup.
3.Analysisofeachofthe10companies’thathadthiscommittee/paidseparatefeesforthiscommittee.Nocomparativeratioinformationisprovidedinthisinstance,asSouthPortdoesnotcurrently payseparatefeestothisposition.
4.Only4companiespaidadditionalfeesforthisrole.SouthPortdoesnotcurrentlypayseparatefeesforthisposition.
5.ThisdatapertainstoSouthPort’sHealth&SafetyCommittee,astherewasinsufficientincidenceofthatspecificcommitteetypetopublishmarketdata.Analysisofthe5companiesinthesample thathadthisrole/paidadditionalremunerationtothisroleissummarisedhere.Nocomparativeratioanalysisisprovidedinthisinstance,asSouthPortdoesnotcurrentlypayseparatecommittee feesfortheH&Scommitteeresponsibilities.
6.Analysisofeachofthe11companieswhereapoolfeeisset/disclosed.
7.Analysisforthe11companieswhichdisclosedactualfeespaid.NBthisistheonlydatawheretemporaryreductionstofeesduetoimpactsresultingfromCOVID-19mayfeatureinouranalysis. Policyfees(onwhichthemajorityoftheanalysisisbased),donotreflect/captureanytemporarydiscounts.
Appendix1–Comparatorgroup
AFTPharmaceuticalsLimited369130122
ComvitaLimited234192287
MarsdenMaritimeHoldingsLimited2337178
Steel&TubeHoldingsLimited221480369
MyFoodBagGroupLimited206194106
SeekaLimited195310482
GreenCrossHealthLimited188670409
SmartpayHoldingsLimited1554871
GentrackGroupLimited147106209
MoveLogisticsGroupLimited134353338
RadiusHealthcareLimited98133290
Source:MarketcapitalisationdatawassourcedfromtheNZXwebsiteinJuly2022,whenthepeercomparatorgroupwasbeingcomprised/agreed. Annualrevenueandtotalassetnumbersweresourcedfromthemostrecentlyavailableannualreports..
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