DIRECTORS’ FEES

Otago Daily Times, Issue 25799, 21 March 1945, Page 6

DIRECTORS’ FEES

Sir, —As a small shareholder in the Dominion Rubber Company, Ltd., I was greatly interested to read the letter signed “ Observer ” in this morning’s Daily Times. I, too was very surprised to see the item “.Directors’ Fees, £150,” appearing in the accounts, especially when the amount is compared with the allowance paid to the manager of the estate, £ 100 The manager is a prisoner of war in Japanese hands, and has been so for over three years. His wife escaped to Australia, and this sum of £IOO is paid to her. While the directors take £l5O for doing what can only have been a very minor job, the wife of the prisoner in a Japanese prisoner camp gets only £IOO. Would it not have been a graceful gesture for the directors to have done their very nominal job for nothing and to have voted the total sum of £250 to the manager and his Wife and child. That would have more nearly approached equality of sacrifice through war conditions.—l am, etc., March 20. Shareholder.

Sir, —A letter in this morning’s Daily Times was rather intriguing. The writer starts off by casting a slur on directors of companies who are up in years, and then goes on to attack the directors of the Dominion Rubber Company for accepting the fees voted to them by the shareholders at the last general meeting. The whole tone of your correspondent’s letter indicates a jaundiced state of mind. While I am not a very large shareholder in the company mentioned, I realise that the directors have a great responsibility, especially so since the estate has been in enemy hands, and they are to be congratulated on their wisdom and business acumen in making investments that show a profit instead of a loss in the years that the estate has been non-revenue producing. Could " Observer ” have done better? , , „ Now that the Allies have carried the war to Japan's front doorstep, it is reasonable to suppose that the rubber plantations will soon be returned to the company, and then there will be a great deal of reconstructing to be done, and it is then that the experience and business ability of the directors will be most required, and to obtain or retain that service “ Observer ” suggests remuneration at the rate of five shillings per week in order to give the shareholders a return of a halfpenny per share. Has Observer ” not heard the adage Penny wise and pound foolish ”? For the few extra pence that “ Observer ” would save I would advise him that when you have the services cf good men it is a cardinal principle of business to see . ; ‘ lat T ire sufficiently well am. March 20.