The board of newly-merged Bendigo Bank and Adelaide Bank will call for shareholders to increase the cap on directors’ fees by $500,000 at its annual general meeting next year.
The company is seeking approval to increase the maximum aggregate amount payable to non-executive directors by way of directors’ fees from $1.2 million to $1.7 million per annum.
In a statement released to the Australian Securities Exchange yesterday, Bendigo Bank said the proposed fee increase followed the company’s decision to amend its business constitution as well as increase its board size.
“Approval to increase the board’s size was sought to ensure that an appropriate mix of knowledge and experience from both businesses is carried forward and represented on the board, particularly during the merger integration phase,” the statement said.
“If shareholders approve the proposal, the current annual base fee will remain unchanged for the 2008 financial year. The agreements will also be reviewed in June 2008.”
The current fee limit of $1.2 million, which was approved by shareholders in 2005, included superannuation and fees paid to non-executive directors for for their service on board committees and subsidiary company boards.
At the company’s 29 January 2008 meeting, shareholders will also be asked to vote on the proposed change of name to Bendigo and Adelaide Bank. The proposal was agreed as part of the merger agreement with Adelaide Bank.
The merged entity, Bendigo and Adelaide Bank has about $7 billion of funds under management and advice and loans under management of more than $43 billion.
Bendigo and Adelaide Bank announced their intention to merge in August.
