Renewal of Directors’ Share Plan
The Board of Abano Healthcare Group (ABA:NZX) has approved the renewal of the existing Directors’ Share Plan (the Plan) for a further three years.
Under this Plan, 50% of the annual after tax fees for non-executive directors are paid in shares, which are acquired on the market on a quarterly basis.
Chairman of Abano, Mr Trevor Janes, said: “The Plan was put in place in 2012 as the Board believes that directors should own an appropriate number of shares in the Company, which further aligns directors’ interests with those of other shareholders.
“This policy is in line with NZX Corporate Governance Best Practice Code, whereby directors are encouraged to invest a portion of their cash directors’ remuneration in purchasing the Issuer’s shares.”
The ability for public company directors to purchase shares on market is constrained by Insider Trading regulations. Therefore, the Plan provides Abano’s directors with access to Abano shares, with purchases made on-market by Craigs Investment Partners according to a predetermined, fixed timetable.
Fifty percent of participating directors acquire shares in one quarter and the other 50% of directors acquire shares in the next quarter, to avoid large numbers of shares being acquired all at once.