Due to a long-term decline in its share price, IT distributor and retailer Renaissance Corporation has been forced to apply to the NZX to issue shares to its new CEO and CFO.
Renaissance's falling share price is the reason behind the NZ Stock Exchange granting a waiver from NZX listing rules that require shareholder approval to issue performance-based share packages to executives under certain circumstances.
Renaissance applied to the NZX for a wavier of of the rule that require a shareholder meeting if share packages issued to executives exceed 3 percent of a company’s total share capital.
The reason: the slide in Renaissance’s share price since the previous executive incentive scheme, under which shares were issued to former CEO Paul Johnston and CFO Clive Lewis in 2008.
The difference in the share price between now and then is such that for new CEO Richard Webb and incoming CFO Shaun Rendell to be granted share packages worth a similar dollar amount, packages comprising a higher volume of Renaissance’s total share capital have to be issued.
Johnston and Lewis’ packages, granted in 2008, comprised 1.5 percent of Renaissance’s issued capital while the packages that Renaissance intends to grant to Webb and Rendell make up 3.7 percent.
Read more at Computerworld.