DIRECTORS' REMUNERATION.

Auckland Star, Volume LXVII, Issue 207, 2 September 1936, Page 4

DIRECTORS' REMUNERATION.

G. J. COLES AND CO., LTD. SHAREHOLDERS' QUESTIONS. An attempt to ascertain the amount of remuneration paid to directors who are also executives of the company was made at the annual meeting of (jr. J. Coles and Co., Ltd , in Melbourne last week. Shareholders suggested that if substantial amounts were paid the effect was to reduce the amount of profit available for ordinary shareholders. Although the chairman, Mr. A. W. Coles, declined to make the information available, he admitted that it was the policy of the company to pay bonuses in the form of a percentage oil net profits to directors who also held executive positions, and that he had stated at the last general meeting that three of the high executives who were members of the board had received in that year more than £ 10,000. One shareholder said lie had reason to believe that the total remuneration received by six of the seven directors during 1934-35 amounted to £U3,O(X), equal to 8% per cent on ordinary capital, while in 1935-30 he was informed that these six directors had received £57,000, equal to over 7 per cent on ordinary capital. In those years ordinary shareholders received 12% per cent per annum. His information was that in 1934-35 three of the highest paid directors received £41,000, or an average of over £13,000 each.

In reply, Mr. A. W. Coles indicated that it was regarded as undesirable, in the interests of the company, to disclose "the information, and he declined either to confirm or deny the shareholder's statement. "The figures quoted," he said, "may or may not be correct. Where he got them from I do not know, but the board did not issue them.''