There has been a significant increase in the number of ASX 300 companies receiving a strike against their remuneration report in the 2018 AGM season, with fifteen companies overall receiving strikes compared with six in 2017.
The Australian Securities & Investments Commission issued Report 564 in January this year.
Among the top 300 listed companies by market capitalisation*, there were six companies that experienced a significant shareholder vote against their Remuneration Report during the final quarter of the 2017 Annual General Meeting season.
We discuss the simple process companies should follow to minimise the likelihood of a strike at their next AGM.
2016 has been the year of the high-profile strike, with the list of companies receiving an adverse remuneration report vote reading like a who’s who of corporate Australia.
How do companies implement strategic, cultural, safety or other non-financial performance criteria into bonus plans without incurring adverse votes from investors?
Egan Associates has prepared a summary of 2016 institutional investor and proxy advisor views for your reference.
Remuneration issues have been high on the agenda this annual general meeting season as shareholders sought explanations on the quantum of Executive pay and pay for performance alignment.