Director remuneration and performance

Remuneration of Non-Executive Directors

Tower's remuneration policies aim to attract and retain talented and motivated directors. The Board’s policy is to remunerate directors at a similar level to comparable Australasian companies, with a small premium to reflect the complexity of the insurance and financial services sector.

At the Annual Shareholders' Meeting in February 2004 shareholders approved an increase in non-executive director annual remuneration to the current maximum of NZ$900,000 per annum. Tower seeks external advice when reviewing Board remuneration. The Remuneration and Appointments Committee is responsible for reviewing directors' fees. Non-executive directors are also paid additional annual fees for sitting on Board Committees.

Levels of Non-Executive Directors' remuneration:

  • $130,000 to the Chair of Tower Limited
  • $78,570 to each Tower Limited Non-Executive Director, excluding the Chair
  • $15,000 to the Chair and $9,000 to each member of the Audit and Risk Committee

Indemnity and Insurance

In accordance with section 162 of the Companies Act 1993 and Tower's constitution, Tower has provided insurance for and indemnities to, directors and employees of Tower for losses from actions undertaken in the course of their duties. The insurance includes indemnity costs and expenses incurred to defend an action that falls outside the scope of the indemnity. Particulars are entered in the Interests Register pursuant to section 162 of the Companies Act 1993.

Download TOWER's Constitution

Board and Chief Executive Officer performance reviews

The Board recognises that the performance of the directors and Board Committees is crucial to Tower's success and to the interests of its shareholders. The Board regularly reviews its own composition and performance and that of Board Committees in accordance with the terms of the Board Charter (which also includes a review of the Board structure, policies, Board succession, delegations and the necessity for and composition of the Committees). 

The Remuneration and Appointments Committee is responsible for the regular performance management and appraisal of the Chief Executive Officer, individual directors and senior executives. Evaluations may be carried by an external consultant.