Pay rise for MRP directors ‘obscene’

Mighty River Power directors will get pay rises close to the median wage, in a move labelled by a union boss as ‘‘obscene’’.

The Government yesterday announced that once the company is floated on the stock exchange, fees for directors will increase from between $36,000 and $52,000.

According to Statistics NZ, the median wage is $41,600 a year.

Opponents slammed the increases as unfair on ordinary Kiwis struggling to pay rising power bills, but business commentators said the new fees were about right.

Directors will also share a new $85,000 pool for committee work.

Based on the current seven member board, the changes will cost an additional $362,000 a year but that could hit $434,000 if two vacancies are filled.

It comes after a one-off $500,000 bonus for chief executive Doug Heffernan.

Top union boss Helen Kelly said the amounts were ‘‘obscene’’ and intolerable.