Director remuneration and performance
Remuneration of Non-Executive Directors
The Board’s approach 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:
- $180,000 to the Chair of Tower Limited (including Audit and Risk Committee fees)
- $110,000 to each Tower Limited Non-Executive Director (including fee for Audit and Risk Committee Chairs)
- $100,000 to each Tower Limited Non-Executive Director (including Audit and Risk Committee fees)
Director, Board and Committee performance
The Board recognises that the performance of its 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 the Board Committees in accordance with the terms of the Board Charter.
A performance evaluation of the Board and Board Committees was carried out by an external party in May 2021, in accordance with the Board Charter.
Board and Chief Executive Officer performance reviews
The Board recognises that the performance of its 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 the Board Committees in accordance with the terms of the Board Charter.
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.
