NZX Governance Explorer

Pay for Failure: Hall of Shame

Directors who received pay increases while their companies underperformed

19
Total Red Flags
1
🔴 Critical
12
🟠 Warning
6
🟡 Caution

Serial Offenders

Directors with multiple pay-for-failure instances across different years

Dame Therese Maria Walsh
2 red flags across 1 company (AIR)
2
incidents
Scott St John
2 red flags across 1 company (FPH)
2
incidents
Dean Bracewell
2 red flags across 1 company (AIR)
2
incidents
Neville Mitchell
2 red flags across 1 company (FPH)
2
incidents
Larry De Shon
2 red flags across 1 company (AIR)
2
incidents
Philippa Mary Greenwood
2 red flags across 1 company (FPH)
2
incidents

All Pay for Failure Instances

Sorted by severity and compensation increase percentage

🔴CRITICAL
AIR
Dame Therese Maria Walshat Air New Zealand
FY2020: $120,000 → $222,375 (+85.3%)
Benchmark Comparison: Stock -48.2% vs NZ50 +9.4% = -57.7% alpha
  • └─Stock price declined -48.2%
🟠WARNING
EBO
Elizabeth Couttsat EBOS Group Limited
FY2020: $193,000 → $313,885 (+62.6%)
Benchmark Comparison: Stock -3.5% vs NZ50 +9.4% = -12.9% alpha
  • └─Stock price was flat/negative (-3.5%)
🟠WARNING
FPH
Scott St Johnat Fisher & Paykel Healthcare Corporation Limited
FY2021: $150,271 → $220,680 (+46.9%)
Benchmark Comparison: Stock -7.5% vs NZ50 +11.5% = -19.0% alpha
  • └─Stock price was flat/negative (-7.5%)
🟠WARNING
AIR
Dean Bracewellat Air New Zealand
FY2022: $93,500 → $136,667 (+46.2%)
Benchmark Comparison: Stock -4.1% vs NZ50 +1.7% = -5.9% alpha
  • └─Stock price was flat/negative (-4.1%)
🟠WARNING
AIR
Laurissa Cooneyat Air New Zealand
FY2022: $102,000 → $127,500 (+25.0%)
Benchmark Comparison: Stock -4.1% vs NZ50 +1.7% = -5.9% alpha
  • └─Stock price was flat/negative (-4.1%)
🟠WARNING
FPH
Neville Mitchellat Fisher & Paykel Healthcare Corporation Limited
FY2021: $143,061 → $176,799 (+23.6%)
Benchmark Comparison: Stock -7.5% vs NZ50 +11.5% = -19.0% alpha
  • └─Stock price was flat/negative (-7.5%)
🟠WARNING
AIR
Larry De Shonat Air New Zealand
FY2022: $102,000 → $120,000 (+17.6%)
Benchmark Comparison: Stock -4.1% vs NZ50 +1.7% = -5.9% alpha
  • └─Stock price was flat/negative (-4.1%)
🟠WARNING
AIR
Jonathan Masonat Air New Zealand
FY2022: $119,000 → $140,000 (+17.6%)
Benchmark Comparison: Stock -4.1% vs NZ50 +1.7% = -5.9% alpha
  • └─Stock price was flat/negative (-4.1%)
🟠WARNING
AIR
Dame Therese Maria Walshat Air New Zealand
FY2022: $229,500 → $270,000 (+17.6%)
Benchmark Comparison: Stock -4.1% vs NZ50 +1.7% = -5.9% alpha
  • └─Stock price was flat/negative (-4.1%)
🟠WARNING
FPH
Geraldine McBrideat Fisher & Paykel Healthcare Corporation Limited
FY2021: $103,298 → $117,417 (+13.7%)
Benchmark Comparison: Stock -7.5% vs NZ50 +11.5% = -19.0% alpha
  • └─Stock price was flat/negative (-7.5%)
🟠WARNING
FPH
Philippa Mary Greenwoodat Fisher & Paykel Healthcare Corporation Limited
FY2021: $126,759 → $141,775 (+11.8%)
Benchmark Comparison: Stock -7.5% vs NZ50 +11.5% = -19.0% alpha
  • └─Stock price was flat/negative (-7.5%)
🟠WARNING
FPH
Michael Daniellat Fisher & Paykel Healthcare Corporation Limited
FY2021: $120,907 → $135,025 (+11.7%)
Benchmark Comparison: Stock -7.5% vs NZ50 +11.5% = -19.0% alpha
  • └─Stock price was flat/negative (-7.5%)
🟠WARNING
EBO
Sarah Ottreyat EBOS Group Limited
FY2020: $153,000 → $170,000 (+11.1%)
Benchmark Comparison: Stock -3.5% vs NZ50 +9.4% = -12.9% alpha
  • └─Stock price was flat/negative (-3.5%)
🟡CAUTION
AIR
Dean Bracewellat Air New Zealand
FY2021: $23,375 → $93,500 (+300.0%)
Benchmark Comparison: Stock +14.4% vs NZ50 +11.5% = +2.9% alpha
  • └─Pay growth (300.0%) outpaced stock return (+14.4%)
Context: Note: This increase may reflect a partial year in the previous period (e.g., mid-year appointment).
🟡CAUTION
AIR
Larry De Shonat Air New Zealand
FY2021: $25,500 → $102,000 (+300.0%)
Benchmark Comparison: Stock +14.4% vs NZ50 +11.5% = +2.9% alpha
  • └─Pay growth (300.0%) outpaced stock return (+14.4%)
Context: Note: This increase may reflect a partial year in the previous period (e.g., mid-year appointment).
🟡CAUTION
EBO
Nicholas Dowlingat EBOS Group Limited
FY2021: $66,374 → $177,500 (+167.4%)
Benchmark Comparison: Stock +54.6% vs NZ50 +11.5% = +43.1% alpha
  • └─Pay growth (167.4%) outpaced stock return (+54.6%)
🟡CAUTION
FPH
Philippa Mary Greenwoodat Fisher & Paykel Healthcare Corporation Limited
FY2019: $94,393 → $121,300 (+28.5%)
Benchmark Comparison: Stock +5.0% vs NZ50 +17.4% = -12.4% alpha
  • └─Pay growth (28.5%) outpaced stock return (+5.0%)
🟡CAUTION
FPH
Scott St Johnat Fisher & Paykel Healthcare Corporation Limited
FY2022: $220,680 → $275,302 (+24.8%)
Benchmark Comparison: Stock +7.9% vs NZ50 +1.7% = +6.1% alpha
  • └─Pay growth (24.8%) outpaced stock return (+7.9%)
🟡CAUTION
FPH
Neville Mitchellat Fisher & Paykel Healthcare Corporation Limited
FY2022: $176,799 → $205,588 (+16.3%)
Benchmark Comparison: Stock +7.9% vs NZ50 +1.7% = +6.1% alpha
  • └─Pay growth (16.3%) outpaced stock return (+7.9%)

Methodology & Disclaimers

Red Flag Tiers

  • 🔴 CRITICAL: Director compensation increased by >10% year-over-year AND stock price declined by >10%, OR revenue declined by >10%, OR net profit declined by >15%
  • 🟠 WARNING: Director compensation increased by >10% year-over-year AND stock price performance was flat or slightly negative (-5% to +5%)
  • 🟡 CAUTION: Director compensation growth significantly outpaced stock price performance (pay increased more than 2x stock return)

Important Context

  • • Partial Year Appointments: Directors who join mid-year will show large percentage increases in their first full year. These are flagged with context notes.
  • • Financial Year: Stock performance is measured for NZX financial year (July 1 - June 30)
  • • Board Changes: Large compensation changes may reflect changes in committee roles, chair positions, or other responsibilities
  • • Market Conditions: This analysis does not account for broader market downturns, industry-specific challenges, or other mitigating factors
  • • Data Availability: Analysis is limited to companies with available director compensation and stock price data

Why This Matters

"Pay for failure" erodes shareholder trust and indicates poor board oversight. Directors should be accountable for company performance, and compensation should align with shareholder returns. This analysis helps investors identify potential governance issues and hold boards accountable.

This page updates automatically as new director compensation and stock price data is added to the database. Last generated: 6 December 2025