- Hon Paul Goldsmith
The Government is bringing director fees for 22 Crown-owned companies closer to market rate in order to retain and attract high quality directors, State Owned Enterprises Minister Paul Goldsmith says.
"Ordinary directors' fees for these companies have been largely static for more than 15 years and have fallen significantly below market rate, some by up to 56 per cent.
"This is creating a major barrier to attracting and retaining directors with the commercial skills needed for Crown boards.
"Crown-owned companies, like private ones, are facing an increasingly complex operating environment.
"We can't expect them to perform as well as their counterparts without giving them the means and direction to do so. Paying fair remuneration is a key part of this."
Fees will be increased in two stages, once next year to about 85 per cent of the market rate, then again in 2026 to about 90 per cent.
In the most recently completed financial year, the 22 companies generated revenue of approximately $6.3 billion on assets worth approximately $58 billion.
Individual increases will depend on the complexity of directors' roles and the scale of their responsibilities.
