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.
Two recent shareholder-initiated strikes, one at Telstra and the other at Tabcorp, potentially reflect different foundations leading shareholders to vote against their Remuneration Reports.
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.
Five years after the introduction of the two strikes rule, it’s a good time to reflect on the legislation’s effectiveness in ensuring reasonable executive remuneration.