The quite different incentive plans produced by 2 listed companies on Monday were intriguing. While one offered a jackpot and really didn’t look like a long-term plan, the other contained a couple of novel ideas and looked a little further forward…..
But, as you’ll see from my comment at the foot of the story, I think they are both fundamentally flawed. Both are about the encouragement of greed in one person, when boards ought to be encouraging an ethos of company-wide improvement. You don’t get that by throwing the bank book to the boss…..
A couple of commercial transactions this week have been at fairly firm yields – local investors are often inclined to pay that bit more, which is what happened in a Remuera tender. Over at Milford, a specialist medical centre attracted serious bidding, but it stopped just short of what blue chip assets have been achieving, perhaps the result of the recent interest rate rises….
In other news today…..
The BIM handbook is out. BIM – building information modelling – is a big advance in construction efficiency, pricing & understanding and attracts some very ardent enthusiasts….
In another building efficiency story, the Asteron headquarters in Wellington have achieved a 5.5-star Nabers energy efficiency rating, only the second building in the country to do it….
Dorchester Pacific’s bid to take over Turners Auctions isn’t surprising. Since the company exited its moratorium, it’s been intent on lifting itself through acquisition & rationalisation in specific finance sector fields….
And, at last, a highway PPP. Australia has had some bad experiences where new tolled highways haven’t secured the traffic to make them profitable. The terms of the Transmission Gully performance haven’t been fully spelt out, so it will be some years before we know if it’s a successful contract model….
On the move updated…..
In the Neighbourhoods…..
Isthmus east – Remuera: Local investor buys block of Remuera shops
North-east – Milford: Milford medical centre sells at 6.5% yield
In the Sectors…..
Economy – productivity: BIM handbook released
Securities NZ – Dorchester Pacific: Dorchester launches full Turners Auctions bid after buying out Ecuadoreans
In Land use…..
Design – green building: Asteron Centre in Wellington wins top energy-saving accolade
Infrastructure – roads: Transmission Gully PPP contract signed