Summerset boss sells stake after company receives $8.8m in government wage subsidies
Monday, 20 April 2020
Summerset Group chief executive Julian Cook sold $1.5 million worth of shares within days of the company receiving $8.8m in government wage subsidies.
According to a disclosure statement filed with the NZX on April 17, Cook cut his stake in the retirement village developer on April 15 when he sold 250,000 shares, leaving him with 1.7m shares.
Summerset is one of the country's largest retirement village companies, with 31 villages completed or under development (including two in Australia).
The Work and Income wage subsidy register showed Summerset Management Group had received $8.8m for 1344 workers under the scheme to assist businesses adversely affected by coronavirus.
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The company's shares have risen recently, going from $3.71 in late March to $6.23 on April 15, after trading at around $9 in February.
When approached for comment Summerset said Cook had no statement to make on the sale of his personal shares, and it was a completely separate issue to the acceptance of wage subsidies which had been used to avoid redundancies.
Cook, the executive leadership team and board of directors had taken a a 20 per cent pay cut, and about 260 corporate and construction staff had moved to a four-day week with a corresponding reduction in pay.
A spokeswoman said the lockdown had significantly affected sales of retirement village units and work at 12 construction sites, as well as leading to increased costs.
Summerset had spent millions of dollars in keeping residents and staff safe through the hiring of security guards at village entrances, the recruitment of an extra 135 nurses and caregivers, and large orders of personal protective equipment.