18 Feb 2011

Directors' fees keep rising despite economic climate

12:58 pm on 18 February 2011

A new survey shows fees for company directors are rising faster than either inflation or wages.

The annual survey by Moyle Remuneration Consulting says many directors got a rise last year despite hard economic times, with the median increase 8.7%.

The rate of increase is slower than in recent years, when median increases were between 15% and 20%.

Since 2005, private sector directors' fees have soared ahead of state sector directors' fees, rising 50% compared with 23%.

Wage rises have hovered between 1.5% and 3% annually in the same period.

The increase comes despite a claim by the president of the Institute of Directors that the performance standards of boards of directors are dropping.

Kerry McDonald says a spate of finance company failures has highlighted the weakness of some New Zealand directors, many of whom do not have the same level of experience as in the past.