No bonus agreement —bank chairman
PA Wellington The Rural Bank board has no bonus agreement with its managing director, Mr Murray Bolton, said the new board chairman, Mr John Shortt, yesterday. This was in spite of Parliament being told this week such an agreement did exist, he said.
“We are not aware of anything. Nothing has been brought to our attention.”
A recent Audit Office report into the Rural Bank revealed there was an unwritten agreement between the then Minister for State-Owned Enterprises, Mr Richard Prebble, and Mr Bolton outlining a performancerelated bonus for Mr Bolton which was dependent on the successful sale of
the bank. The present Minister, Mr Rodger, said in Parliament this week the agreement was between Mr Bolton and the bank’s board, not a Government Minister.
Mr Bolton said he did not disagree with the Audit Office report, which included a comment on the agreement with Mr Prebble, but when asked specifically about the matter he said it was “a very complex issue.”
Mr Shortt and a fellow director, Ms Bronwyn Monopoli, joined Mr Bolton on the board in April after the former chairman, Mr Ken Macdonald, resigned to join a farmerbased consortium bidding for the bank and former director, Mrs Jenny
Morel, was sacked because she disputed the board’s valuation of the bank.
Sources close to the previous board say the board had no agreement with Mr Bolton either.
The Treasury has also said it had no knowledge of any unwritten agreement.
A press statement by the Controller and Audi-tor-General, Mr Brian Tyler, said the reference to the agreement was based on a letter Mr Bolton sent Mr Rodger in early April.
“Those contents were confirmed by Mr Bolton, Mr Macdonald and the Treasury when the draft report was given to them for comment,” Mr Tyler said.
No bonus agreement —bank chairman
Press, 27 May 1989, Page 2
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