Fletcher Building slashes CEO pay package: Andrew Reding gets $2.27m while predecessor Ross Taylor was on $6.58m

In the latest report, Fletcher clearly spelt out its new emphasis.

Ex-Fletcher CEO Ross Taylor back in 2022. Photo / Jason Oxenham

“For FY26, financial goals carried a greater weighting (80%) than in previous years to reflect the need to drive improved financial results,” the remuneration report said.

Taylor was eligible for much higher pay because of the incentive schemes the company was running at the time.

His $6.5m pay in 2022 was boosted by $3.3m in short-term incentives alone – measures the company was then applying to effect changes.

Taylor’s pay was based on achieving various goals, including leadership, cutting injury frequency rates, increasing the number of women in top jobs, implementing and then carrying out a financial plan.

Taylor, an Australian, was chief executive of the Penrose-headquartered business from November 2017 until early 2024.

Andrew Reding was paid $2.27m in the 2026 year. Photo / Michael Craig

Reding, originally from Britain, was appointed on September 30, 2024. He is the managing director and group CEO.

He was paid $1,450,005 in base remuneration, $6392 in other benefits, and nothing in short-term incentives.

He was granted 422,532 shares, with a value of $2,175,000, but these are awarded only after three years, if performance criteria are met.

In FY26, financial goals for Reding included net debt within a target range of $400m to $900m.

At the NZICC opening in February: Ngāti Whātua Ōrākei chairwoman Marama Royal, NZICC general manager Pru Daly, SkyCity CEO Jason Wallbridge, Prime Minister Christopher Luxon, Tourism Minister Louise Upston, Auckland Mayor Wayne Brown, Deputy Mayor Desley Simpson and Fletcher Building CEO Andrew Reding. Photo / Michael Craig

Reding met that, with Fletcher’s debt in 2026 at $637m, “comfortably within the target range and significantly below the FY25 forecast range of $1.05b to $1.10b, reflecting strong balance sheet management and cash discipline”, the remuneration report said.

Another financial target for Reding was delivering $30m in corporate cost savings.

One target he didn’t meet was cutting injury frequency rates, which the report said had increased during FY26.

“While this partly reflects the impact of divested businesses, it also highlights the need for improved safety performance,” the report said.

Fletcher Building’s Andrew Reding. Photo / Fletcher Building

Another target Reding failed to reach was group free cash, or the money the company had left after spending to support and maintain its operations and capital assets.

Group free cash was below the threshold performance hurdle in FY26.

Reding was paid $1.09m in the 2025 year, but that was partly because he didn’t work the full year.

FY25 therefore reflected that he worked only from his appointment on September 30, 2024, until the close of the financial year on June 30.

He doesn’t get board fees.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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