IWI IKA - supporting iwi fisheries

Setting Directors' Fees

Deciding on what is an appropriate fee to pay AHC directors can be a difficult task.  The decision may raise emotionally charged questions around a director’s level of commitment to the “kaupapa” or to their iwi.  The following information captures a range of factors to assist anyone involved in the decision to set appropriate directors’ fees for their fisheries AHC.

  • What is the number of directors?  Consider that you would expect to pay a single director more than multiple directors where the single director is required to perform the same level of tasks.
  • What is the size of the asset portfolio that the directors will be governing?  The larger and more diverse the asset portfolio, generally the higher the fees.
  • What is the current state of the fishing industry?  Is it more difficult for directors to make a profit today than it was 2 years ago?
  • How much value does a director’s particular skills and experience add to the value of the business?  Can their contribution be measured?
  • Will it be an annual director fee or a meeting fee?
  • Will the director be paid a single fee covering the whole year regardless of the number of hours worked or will the fee correspond to a maximum number of hours and anything above is charged by the director by the hour?
  • If the AHC or MIO has a clear strategic direction that requires the AHC board to drive it, you may wish to consider a set directors’ fee with a bonus component that is tied to the achievement of specified strategic outcomes.

An AHC directorship shouldn’t be a path for a director to become a millionaire but it must be sufficient to make the AHC mahi a high priority.  The reality is that for many directors every hour spent on AHC mahi is an hour away from their whanau.