Abano Announces Fixed Trading Share Plan for Directors
The Board of Abano Healthcare Group has approved the implementation of a new director remuneration arrangement, whereby 50% of after tax fees for non-executive directors will be paid in shares, which will be acquired on market on a quarterly basis.
Chairman of Abano, Trevor Janes, commented: “The Abano Board believes that directors should own shares in the Company, and all Board members are supportive of this arrangement. Due to trading restrictions, there are limited opportunities for Abano’s directors to purchase the Company’s shares. The new Fixed Trading Share Plan will allow access to Abano shares, and will further align directors’ interests with those of our shareholders.
“This policy is in line with NZX Corporate Governance Best Practice Code whereby directors are encouraged to invest a portion of their cash remuneration in the Company’s shares.”
To avoid large numbers of shares being acquired all at once, the purchases will be alternated, with 50% of participating directors acquiring shares in one quarter, and the other 50% of directors acquiring shares in the next quarter. Craigs Investment Partners will be responsible for the share transactions and acquisitions on behalf of the directors, with purchases made according to a predetermined, fixed timetable.
The plan is for a set period of three years, and only executive directors (who are not paid directors’ fees and so will not participate in the arrangements) will be able to vote at Board level on any modifications and changes within that time.